Feeds

Debit card fraud underscores legal loopholes

Three secret data leaks to blame

The Power of One eBook: Top reasons to choose HP BladeSystem

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

Designing a Defense for Mobile Applications

More from The Register

next story
DARPA-derived secure microkernel goes open source tomorrow
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
Four fake Google haxbots hit YOUR WEBSITE every day
Goog the perfect ruse to slip into SEO orfice
Putin: Crack Tor for me and I'll make you a MILLIONAIRE
Russian Interior Ministry offers big pile o' roubles for busting pro-privacy browser
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.