Bennett introduces data bill
The theft of a laptop containing millions of Social Security numbers from the Veterans Affairs Department and other recent reports of similar security breaches have put identity theft risk in the national spotlight.
Bennett's bill builds on some federal rules already in place for banks and aims to protect Social Security numbers, driver's license numbers, taxpayer identification numbers in combination with names, addresses and telephone numbers. The bill also protects bank account numbers, credit card accounts, access codes, password and other sensitive information. It would cover current customers, past customers and other lists of potential customers a bank or business would have.
Businesses covered under the bill will have to put in certain safety precautions to protect the data and notify consumers in the event of a security breach. The government would formulate its own regulation on how the notification would work.
"Criminals have shown they know how to exploit any weakness in information databases and networks, so we must do more to protect this information regardless of where it is located," Bennett said. "Most of the recent data security breaches have occurred outside of financial institutions."
"A national patchwork of inconsistent laws leads to confusion, delays and higher costs," Bennett said. "It makes it more difficult to notify consumers in a timely manner, particularly when they need to act quickly to protect themselves. We need a national standard to ensure that all consumers are equally protected, regardless of where they live."
Ken Clayton, chief legislative council for the American Bankers Association, called the bill "a good step forward" and said the interest in Congress in the recent security breaches boosts its chances of passing this session.
Clayton said it "builds on what Congress has already done."
E-mail: suzanne@desnews.com
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