The new federal legislation, The Data Breach Prevention and Compensation Act, would:
- Create a new cybersecurity office within the Federal Trade Commission
- Incentivize data security by imposing mandatory fines on credit reporting agencies with flawed security
- Annual inspections by the FTC of credit reporting agencies
- Fines would be divided to:
- 50% to the consumers affected
- 50% to the FTC to fund inspections and cybersecurity research
- Credit reporting agencies would have to report to the FTC their technical and organizational security measures
Gizmodo | New ‘Cybersecurity Office’ Would Oversee Companies Like Equifax and Dole Out Fines for Slipshod Security