Legislation was introduced into Congress this week that would establish a national data privacy law. The bill would require businesses to disclose to consumers any breaches that result in the exposure of personal information.
The legislation is a reaction to the massive security breaches that have occurred over the last year. In the most notable breach, over 40 million credit card numbers were exposed in a security breach involving CardSystems, an online processor. LexisNexis, Bank of America and other corporate entities have also suffered breaches exposing the personal information of millions of individuals.
Under the new legislation, businesses exposing the personal information of more than 1,000 individuals would be required to notify the individuals. Failure to comply with the law would result in penalties of up to $11 million per incident. Interestingly, the legislation would bar businesses and schools from putting Social Security numbers on any form of identification.
Upon receiving notice, consumers would be allowed to put a notice on their credit reports, which would prevent any company from providing new credit under their name. This would effectively stop thieves from opening new credit accounts with the stolen information.
Will It Pass?
The new legislation has a very good chance of becoming federal law. Sponsored by two Republicans and two Democrats, the bill appears to have bipartisan support. Avoiding the vicious partisan politics on Capital Hill is half the battle for any legislation.
Corporate America also appears to be getting behind the bill. Although this might seem surprising at first, there is a good reason. States including California, Washington and Georgia have already enacted similar laws, but each requires different actions. A federal law, however, will trump all of the state laws and create a uniform requirement for businesses. From a practical standpoint, Corporate America would prefer one standard instead of many.
The new bipartisan legislation is a welcome step in the effort to fight identity theft. Many more steps, however, will be required. You should continue to closely review your credit card statements and credit reports for any unauthorized charges.
Richard Chapo is the lead attorney for the law firm http://www.sandiegobusinesslawfirm.com - a firm providing legal advice to California businesses. Visit http://www.sandiegobusinesslawfirm.com to read more business law articles.
Rolling Meadows Cadillac Escalade rental .. Lockport Chicago limo O’HareHaving been to every city in the country over the... Read More
The Second World War was the continuation of World War... Read More
Revitalization Downtown projects are all the rage in fact the... Read More
In his bid for the presidency, John Kerry pronounced a... Read More
The blogosphere has been jumping around the story like crazy... Read More
To be justified, taxes should satisfy a few conditions:Above all,... Read More
UNAUTHORIZED HACKINGThe term "computer hacking" traditionally describes the penetration into... Read More
Prison guards and corrections professionals are hard at work insuring... Read More
From the comfort of their plush offices and five to... Read More
Heavens, what are we up against? It seems these days... Read More
Recently the CIA staged a practice simulation of a cyber... Read More
Our Airports have excess capacity, which is not being used... Read More
Our Hydro-electricity accounts for some 20% of our current needs.... Read More
Three years ago I published a book of short stories... Read More
Aspartame activists are constantly being attacked because all data are... Read More
Compulsory-attendance laws force parents to send their children to public... Read More
This is the beginning of the end for the man... Read More
Originally published in 1958, "The Ugly American" (Lederer & Burdick)... Read More
As I read the papers and watch the news day... Read More
SYNOD OF DRUM CEATT (494 - 5):It is interesting to... Read More
I had the benefit of getting an interview with Mr.... Read More
In the most rewarding new industries, there is often a... Read More
An American soldier is taken behind enemy lines and brainwashed... Read More
I have witnessed a new era of security in the... Read More
You have probably heard of the Sarbaines Oxley Law (SOX)... Read More
Des Moines rental limo ..Down The Bush and BlairBy now everyone, except us, is... Read More
The United States has never done a full study on... Read More
Rush is right! The government's stepped up bid to regulate... Read More
The predominant discussion in the Indianapolis media over the proposed... Read More
The devastating loss in case of Elliot Spitzer for NY... Read More
There are so many problems with our perceived perfect checks... Read More
Many are condemning the latest GM Terminator seeds. Yet there... Read More
The head of the Club of Rome has said that... Read More
One question not addressed in GM Crops and Monsanto Terminator... Read More
Many times our government regulatory over embellish problems in the... Read More
The first reaction of economies in transition is a sharp... Read More
The evacuation of Gaza is now completed, and the world... Read More
Legislation is getting legs to further curtail your use of... Read More
The civil war in Iraq seems to be much more... Read More
We are seeing some trade wars brewing as American trade... Read More
Many have lost faith in the government and are completely... Read More
The plight of whistleblowers ? those employees who sound the... Read More
I have to be honest. It is time to come... Read More
One third of all fertilized eggs spontaneously abort and are... Read More
Entrepreneurs can clean up the environment if we would let... Read More
Americans pride themselves on being the best, that's a fact.... Read More
Roberto Calvo Macias, a young author and thinker from Spain,... Read More
You say, you want to help the Palestinians, but most... Read More
Do you find it interesting that people complain about the... Read More
The No Child Left Behind can work if the Federal... Read More
Political |