Feeds

Credit card companies can keep data ID theft secret

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

SANS - Survey on application security programs

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. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Web data BLEEDOUT: Users to feel the pain as Heartbleed bug revealed
Vendors and ISPs have work to do updating firmware - if it's possible to fix this
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Mounties always get their man: Heartbleed 'hacker', 19, CUFFED
Canadian teen accused of raiding tax computers using OpenSSL bug
Snowden-inspired crypto-email service Lavaboom launches
German service pays tribute to Lavabit
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.