House committee approves data breach bill

[security curmudgeon <jericho () attrition org>]

http://hcullegislativecenter.blogspot.com/2009/06/house-committee-approves-data-breach.html

Thursday, June 4, 2009
House committee approves data breach bill
> From CUNA News Now, June 4, 2009:

WASHINGTON (6/4/09)--H.R. 2221, the Data Accountability and Trust Act, 
passed the House subcommittee on commerce, trade, and consumer protection 
by a voice vote during a Wednesday markup session.
The bill, which was introduced by House Subcommittee Chair Rep. Bobby Rush 
(D-Ill.), would require businesses to notify affected customers when 
outside parties gain access to sensitive information due to a security 
breach.
Although it supports the goal of granting greater information to consumers 
whose personal information has been compromised by security breaches, the 
Credit Union National Association (CUNA) on Wednesday asked legislators to 
alter some portions of the bill.
In a letter to ranking subcommittee members, CUNA said that while most 
businesses lack the contact information needed to alert their customers, 
financial institutions normally have the means to directly communicate 
with their account holders.
While any notification of data breach victims should be done by the 
financial institutions, the cost of this notification should be covered by 
the entity that compromised the data. Financial institutions should also 
be allowed to disclose the source of the information leak to their 
cardholders to avoid any harm that could be done to their reputation, CUNA 
added.

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