CEO DATELINE - Groups seek policy reform after Equifax data breach
CEO DATELINE - Groups seek policy reform after Equifax data breach
- September 14, 2017 |
- Walt Williams
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At least 10 associations are calling for new consumer notification regulations after the recent revelation that hackers may have obtained personal information on 143 million people through credit-reporting agency Equifax.
Equifax announced Sept. 7 that the personal information of millions of U.S. consumers was accessed from the company's databases between May and July. The company waited six weeks after discovering the hack to tell the public—a time frame many critics said was too long given how the thieves could potentially use the information.
In a Sept. 12 letter to congressional leaders, 10 associations representing a wide range of industries said the hack demonstrated the need for a federal data breach law that "applies to all affected sectors and leaves no holes in our system for some industries that criminals can exploit."
The groups specifically called for a federal data breach notification law that establishes regulatory uniformity across all states and jurisdictions; gives businesses flexibility in meeting the new standards; prevents "overly-punitive enforcement authority" by federal agencies tasked with enforcing data security regulations; and ensures all businesses are held to the same set of notification standards for alerting consumers to data breaches.
"Creating exemptions for particular industry sectors or allowing breached entities to shift their notification burdens onto other businesses will weaken the effectiveness of the legislation, undermine consumer confidence, ignore the scope of the problem, and create loopholes that criminals can exploit," the associations said.
The American Hotel & Lodging Association, International Franchise Association, National Association of Convenience Stores, National Association of Realtors, National Association of Truck Stop Operators, National Council of Chain Restaurants, National Grocers Association, National Retail Federation, Society of Independent Gasoline Marketers of America and U.S. Travel Association signed the letter. http://bit.ly/2wsxJpT
Other associations weighed in with their own statements.
Jim Nussle, CEO of Credit Union National Association, urged Equifax "to develop stronger methods to ensure that all consumers have been contacted and fully appreciate the implication of the breach to their credit file and the risks of identity theft." http://bit.ly/2wcRVB6
Dan Berger, CEO of the National Association of Federally-Insured Credit Unions, drafted a letter to congressional leaders urging lawmakers to adopt national standards for retailers and other businesses that store consumers' personal and financial information.
"The massive breach at Equifax, and the report that they had known about it for weeks without notifying consumers, is yet another demonstration of the need for a legislative solution," he said. http://bit.ly/2y9esfw
The association reprinting credit-reporting agencies took a more cautious tone. In a statement, the Consumer Data Industry Association said the Equifax data breach was serious, but the industry as a whole goes to great lengths to protect customers from cybercrime.
"We work with credit reporting agencies, insurers, banks and other lenders to guarantee that consumer data is secure and used to help Americans succeed," CDIA said. "Our industry is strictly regulated at the state and federal levels, as well as through multiple private parties such as audits by financial institutions." http://bit.ly/2wcPajj
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