Can Cybersecurity Investigate Without a Private Investigator License?
- Sam Spade
- Jul 28
- 5 min read
In the evolving world of cybersecurity and digital forensics, many tech-savvy agencies and consultants offer services that closely resemble private investigations — from uncovering cyberstalkers to tracing financial fraud, identifying anonymous users, or analyzing deleted device data.
But when these activities cross into the legal domain of “investigative services,” a critical question arises:
Is it legal for a cyber or digital forensics agency to conduct investigative work without a private investigator (PI) license in California?
The short answer is no, if the work falls under what California defines as private investigation. The long answer involves understanding state laws, scope of practice, licensing requirements, and how other states treat similar situations.
This article explores the laws, risks, and compliance requirements involved — both in California and in select other U.S. states — offering an in-depth look for clients, attorneys, agencies, and individuals involved in digital investigative services.
🔍 What Is Considered a "Private Investigation" in California?
The legal authority comes from the California Business and Professions Code (BPC), Sections 7520–7539, which regulates private investigators through the Bureau of Security and Investigative Services (BSIS).
📜 Key Definition – BPC §7521:
"A private investigator is a person who, for any consideration whatsoever, engages in business or accepts employment to furnish or agrees to make, or makes any investigation for the purpose of obtaining information" about any of the following:
Crimes or wrongs done or threatened
The identity, habits, conduct, or whereabouts of any person
The credibility of witnesses or parties in litigation
The recovery of lost or stolen property
The cause of fires, accidents, damage, or injury
This broad definition includes both traditional and digital investigations.
🖥️ Are Cyber or Digital Forensic Activities Covered by PI Licensing Law?
Yes — if they are used to:
Collect evidence for court
Investigate people’s conduct or identities
Track suspects or locate individuals
Perform surveillance (including digital/online)
Analyze data for civil or criminal purposes
For example:
Activity | License Required? |
Penetration testing for network security | ❌ No |
Malware removal for corporate clients | ❌ No |
Social media analysis in a legal dispute | ✅ Yes |
IP tracing to identify a harasser | ✅ Yes |
Recovery of deleted data for a lawsuit | ✅ Yes |
Even if no physical surveillance is performed, using digital means to investigate someone's activities or intentions falls under PI law in California.
⚖️ California Case Law & Enforcement Examples
🚨 Real-World Enforcement:
In 2013, the California Department of Consumer Affairs issued cease-and-desist letters to several unlicensed tech firms providing “online investigation services” without a PI license.
In 2019, a cybersecurity contractor who tracked an ex-employee's digital behavior for a civil lawsuit was fined for engaging in unlicensed investigative activity.
🧾 Penalties for Practicing Without a PI License in California
According to BPC §7523 and §7526, penalties include:
Misdemeanor criminal charge
Fines up to $5,000 per offense
Cease and desist orders
Confiscation of evidence or exclusion from court
Civil lawsuits by affected parties
Unlicensed activity voids credibility in court and exposes agencies to serious liability.
👤 Who Must Have a PI License in California?
You must be licensed if you:
Contract directly with a client to obtain sensitive information
Perform surveillance, either physical or digital
Compile evidence for insurance claims, lawsuits, or HR cases
Investigate people, even using online tools or social media
Engage in locating individuals (e.g., skip tracing or tracing cyberstalkers)
You do not need a license if you're:
A full-time employee performing internal investigations for your employer
A licensed attorney or working under attorney supervision
Performing digital system audits or cybersecurity work without targeting individuals
However, as soon as you offer services to the public involving investigations, you enter regulated territory.
🕵️♂️ Who Oversees This in California?
The Bureau of Security and Investigative Services (BSIS) is part of the California Department of Consumer Affairs. They:
License and regulate PIs
Maintain disciplinary records
Investigate complaints and illegal activity
🔗 Check PI Licenses at: www.bsis.ca.gov
🔎 What About Other States?
Let’s look at how other states define and regulate similar activity:
✅ Texas
Regulated under Texas Occupations Code §1702
Digital forensics, social media investigations, and OSINT used for court cases require a license
Texas explicitly includes “cyber investigations” under its PI laws
✅ Florida
Under Chapter 493, Florida Statutes, digital surveillance and investigations of individuals require a Class “C” license
Forensic computer work is allowed only if it doesn’t include personal or legal inquiry
✅ New York
Under Article 7 of the General Business Law, New York includes surveillance and information-gathering — even electronically — under the PI license umbrella
Many unlicensed firms have faced cease-and-desist orders or lawsuits
✅ Illinois
The Detective Act of 2004 requires licensing for anyone gathering information about individuals, including digitally
Unlicensed activity is a Class A misdemeanor
✅ Nevada
Investigations involving digital tracking, identity verification, or cyberstalking cases must be performed by licensed investigators
Fines and suspension for anyone impersonating a licensed professional
📉 Legal and Business Risks for Cyber Firms Operating Without a PI License
Risk Type | Description |
⚖️ Legal | Fines, criminal charges, and lawsuits for operating outside the law |
🔒 Privacy | Potential violations of state and federal privacy laws |
🚫 Admissibility | Courts may reject unlicensed reports and digital evidence |
💼 Client Trust | Reputational damage and loss of contracts if discovered |
🛑 Scope Creep | Cyber firms unintentionally performing regulated work |
✅ When Can a Cybersecurity or Forensics Firm Operate Without a PI License?
Service | License Needed? |
Penetration Testing | ❌ No |
Network Security | ❌ No |
General Digital Forensics (not for court) | ❌ No |
Cyber Investigations for Legal Cases | ✅ Yes |
OSINT for Insurance Claims or Legal Disputes | ✅ Yes |
🧠 Best Practices for Compliance
Get Licensed (or Partner with One):If your work even occasionally involves litigation support, surveillance, or person-specific inquiries, it’s time to get a PI license or retain a licensed investigator on staff.
Disclaim Your Scope:If your work is strictly technical, clearly communicate to clients that you don’t conduct investigations or make personal conclusions.
Consult Legal Counsel:Especially when offering services near the regulatory edge, have a compliance attorney review your contracts and operations.
Collaborate With Licensed PIs:Many cybersecurity firms form referral relationships with licensed private investigators or attorneys to lawfully complete investigations.
👨⚖️ What About Federal Laws?
Although PI licensing is governed state-by-state, federal laws such as the Electronic Communications Privacy Act (ECPA) and Computer Fraud and Abuse Act (CFAA) impose additional restrictions.
Even licensed PIs or cybersecurity firms must not:
Access protected devices without consent
Intercept private communications (emails, calls)
Hack into cloud storage or accounts
Violations can result in federal criminal charges regardless of license status.
🧾 Conclusion: Play It Smart, Stay Compliant
In California and most U.S. states, cybersecurity and digital forensic firms must not engage in private investigation activities unless properly licensed. The line between technical services and regulated investigations is often subtle — but legally significant.
If you:
Trace individuals
Collect evidence for court
Monitor digital activity for behavior patterns
Investigate identities or conduct
...you must comply with PI licensing laws or face significant penalties.
For firms looking to operate lawfully and ethically, the best approach is to:
Secure a California PI license
Work under an attorney's guidance
Collaborate with a licensed PI like Spade & Archer
🕵️ Need a Licensed Investigator for Digital or Cyber Investigations in California?
Spade & Archer is a California-licensed PI firm specializing in:
Cyber harassment investigations
OSINT and digital profiling
Surveillance and behavior analysis
Insurance and legal support
📍 Serving San Francisco, Napa, Sonoma, and statewide
📞 (707) 908-8226 or (415) 715-1956
📧 Email: intake@spadeandarcher.com
Protect your business and your evidence — partner with professionals who understand both the technology and the law.