Feeds

Credit card companies can keep data ID theft secret

That's for us to know, and you to guess

Website security in corporate America

Credit card companies don't have to notify customers their personal information has been stolen, a California Judge ruled today.

The Rothken law firm in Marin County, Ca had brought a class action suit on behalf of cardholders and merchants against CardSystems Solutions, Visa and MasterCard following a high profile data ID heist in June. [PDF, 200kb]

The suit accused the defendents of violating California state law by failing to notify them that personal data had been viewed by hackers, or the data obtained by the intruders.

In June, CardSystems admitted intruders had compromised the confidentiality of 40 million credit card holders, and 200,000 records had left the network. CardSystems had refused to notify the card holders. The Rothken suit also requested that chargeback fees or penalties on hapless card holders who were the victims of ID theft should be waived.

But a San Francisco Superior Court Judge, Richard Kramer, disagreed. "I don't see the emergency," he said. "I don't think there is an immediate threat of irreparable injury" to consumers.

Visa and MasterCard argued that because their relationship is with the issuing banks, not the customers, they don't have to notify the victims.

The Californian disclosure law, passed in January 2003 and a template for disclosure legislation in other states, says that consumers should be notified in the case of ID theft, although it's riddled with loopholes.

The effects of online security fears are already being felt. Analyst firm Gartner Group has revised its 2005 ecommerce prediction downwards this year after 42 per cent of consumers said they were spending less online because of security fears. Some 14 per cent have stopped paying bills online altogether. ®

Protecting users from Firesheep and other Sidejacking attacks with SSL

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
UK.gov lobs another fistful of change at SME infosec nightmares
Senior Lib Dem in 'trying to be relevant' shocker. It's only taxpayers' money, after all
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
TOR users become FBI's No.1 hacking target after legal power grab
Be afeared, me hearties, these scoundrels be spying our signals
Snowden, Dotcom, throw bombs into NZ election campaign
Claim of tapped undersea cable refuted by Kiwi PM as Kim claims extradition plot
Freenode IRC users told to change passwords after securo-breach
Miscreants probably got in, you guys know the drill by now
THREE QUARTERS of Android mobes open to web page spy bug
Metasploit module gobbles KitKat SOP slop
BitTorrent's peer-to-peer chat app Bleep goes live as public alpha
A good day for privacy as invisble.im also reveals its approach to untraceable chats
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.