Lawmakers: 500 Million Financial Records Hacked in 2014. Need Policy Fixes.

Lawmakers wants to know what financial institutions are doing to keep financial data secure. This applies to state and federal lawmakers.

National press focuses on federal lawmakers. So, here we go: Sen. Warren and Rep. Cummings want to know which banks have experienced cyber attacks. They claim 500 million records have been hacked from financial institutions in the last year, and they want solutions to fix it.

We all know this will first get fixed on the state level,  like…

3 Articles on Banks and Credit Unions Suing Retailers After a Data Security Breach

Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued.

Target had sought to dismiss the suit brought by 5 financial institutions. The judge said, “NO,” in one of the first rulings of its kind allowing financial institutions to sue retailers for data breaches. 

Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ c…

Data Security Legislation Predictions for Financial Institutions

Legislation predictions from Bankers: 

  • Banks required to appoint chief information security officers
  • Banks to undergo quarterly tests for information system vulnerabilities
  • Required review of these third-party contracts and relationships
  • Standard set of protocols that banks must follow
  • Tort issues like: 
    • assign legal duties and responsibility
    • illuminate investor or shareholder disclosure obligations
  • <...

Retailer has breach. 5 Banks sue. Litigation continues to Protect Public Policy. Tort Reform on Horizon.

Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued.

Target had sought to dismiss the suit brought by 5 financial institutions. The judge said no.

Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ credit- and debit-card information.”  [ adminPosted inbanking, data privacy, legal trend, legislative trend, retail data breach

State Data Breach Reporting- Example California

Lots of nobel bills become studies and reports when the opposition is vocal. For the last years, the Attorney General of California has released data breach reports.

In 2013, there were 167 breaches reported to the California Attorney General, exposing data of 18.5 Million Californians.

The California Attorney General also makes the following recommendations:  

For the health care industry:

– Use strong encryption to protect medical info…

Data Breach: Staples

News reports allege that Staples had a data breach. There’s a long list of retailers that have endured a data breach. 

Forbes discusses the role personal repsonsibility has in data breach corrections. Legislating personal responsibility is challenging. The modus operandi of the Legislature is putting into place new regulations on retailers, banks and/or creating new civil or criminal penalties. [Forbes]<...

500 Million Financial Records Hacked Says the FBI

The FBI is sharing frightening information. 500 Million financial records have been hacked.

Can you hear all those bills being written? Legisaltor comments write themselves: FBI statistics indicate that 500 million financial records have been hacked. These vicitms deserve justice for the invasion in their privacy. This bill will give the vicitims of hacking justice….

What remains to be seen is whether these bills will go after the hackers? after the financial institutions…