New York Attorney General Eric Schneiderman said data breaches are on the rise.
His office compiled a report that found nearly 23 million personal records were exposed in 2013, costing the state more than $1.3 billion.
Schneiderman said there are now more hackers selling information to direct marketers, who can exploit it.
"The black market value of stolen records is estimated to be about $45, so if you're a hacker and you get into a database and ... steal a thousand people's records, that's a lot of money," he said.
Schneiderman said you can avoid vulnerability to attacks by creating complex passwords and minimizing the amount of data you have online.
To see the report and read more recommendations about protecting yourself from data breaches, click here.