Feeds

Debit card fraud underscores legal loopholes

Three secret data leaks to blame

Top 5 reasons to deploy VMware with Tegile

Two weeks ago, Visa and Mastercard warned banks of the most recent incident - a breach of an ATM network, according to financial industry insiders. The incident has led to warnings on a similar number of accounts as the Sam's Club incident, said ACU's Swofford, suggesting that the total number of accounts involved in the breach could number in the millions.

Representatives at Visa and Mastercard International refused to comment on the issue. However, Citibank released a statement confirming the ATM network breach, but not naming the company responsible for the network.

In the most recent incident, Visa has said that payment software manufactured by Fujitsi Transaction Solutions has flaws that could put customers information at risk, according to a Friday article in the Wall Street Journal.

Despite the recent epidemic of debit and credit card fraud and last year's titanic breach at CardSystems Solutions, Congress is considering a bill that will let more companies escape taking responsibility for fraud, consumer advocates charge.

The bill, known as H.R. 3997 or the "Financial Data Protection Act of 2005", would let companies decide when a data breach is significant enough to merit warning their customers. The House Financial Services Committee approved the legislation on Friday.

"It is ironic that after a year in which over 55m Americans' identities were put at risk through preventable data breaches, the House Financial Services Committee would repeal state laws that have protected consumers from identity theft," Susanna Montezemolo, policy analyst with Consumers Union, the nonprofit publisher of Consumer Reports magazine, said in a statement following the vote.

The federal legislation would supersede the laws passed by states with significantly weaker protection against identity theft. At least 11 states have stronger notification language than the H.R. 3997 and another eight have stronger rules allowing consumers to freeze their credit accounts to prevent fraudulent use, Montezemolo said.

The key flaws in the bill highlighted by consumer advocates include a requirement of a police report verifying an incident of identity fraud before the victim can place a security freeze on their account and so-called trigger language, which allows the company that suffered a breach to make the decision over whether the incident merits disclosure.

"Having trigger language is ridiculous," said the Privacy Rights Clearinghouse's Givens. "If this bill passes and the trigger language remains intact, there will be few, if any, disclosures about data breaches."

H.R. 3997 will next be considered by the full House of Representatives.

This article originally appeared in Security Focus.

Copyright © 2006, SecurityFocus

Internet Security Threat Report 2014

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Home Depot ignored staff warnings of security fail laundry list
'Just use cash', former security staffer warns friends
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
Who.is does the Harlem Shake
Blame it on LOLing XSS terroristas
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.