News
News
2/21/2006
10:20 AM
Connect Directly
RSS
E-Mail
50%
50%

Credit Where Credit Is Due

Another week, another embarrassing IT security breach. Now a congressman wants to shine a spotlight on the companies responsible when customer data is lost.

Visa confirmed last week that an unidentified merchant reported a possible data-security beach, and major banks are sending letters to customers and issuing new credit and debit cards. The FBI and state officials are investigating the incident, which the San Francisco Chronicle said involves the theft of 200,000 card numbers that were used to create counterfeit cards. Visa, the nation's largest credit card company, said in a statement that cardholders are covered "by Visa's zero-liability fraud-protection policy."

What was stolen, how, and from which merchant wasn't disclosed. But the never-ending string of data losses has prompted Rep. Barney Frank, D-Mass., to suggest ways to embarrass companies in charge of security systems that get hacked. Those companies should be required to notify customers or be named as the party responsible for the breach, he says.

"If this cannot be done legally at present, I feel strongly enough on this point to make legislative changes to make this a requirement," Frank, the senior Democrat on the house financial services committee, wrote to Visa and MasterCard.

Visa responded that naming names before an investigation is complete "could be inaccurate and unfair" and would make companies reluctant to share information. But if these fiascos keep happening, customers may become reluctant to trust credit cards and merchants altogether.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - September 10, 2014
A high-scale relational database? NoSQL database? Hadoop? Event-processing technology? When it comes to big data, one size doesn't fit all. Here's how to decide.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.