Feeds

Bank fined $50m for buying drivers' data

Payout strengthens anti-stalker law

Protecting users from Firesheep and other Sidejacking attacks with SSL

A bank which purchased the names and addresses of more than 650,000 people in the US has been ordered to pay a $50m fine. The case was brought by a Florida resident against Fidelity Bank and also included the Electronic Privacy Information Centre.

A court in the US has ordered the payment because it said the bank had violated the Drivers Privacy Protection Act (DPPA). That federal law was enacted in order to protect drivers from being tracked down through their driving records.

The law was based on a California state law which was passed after actress Rebecca Schaeffer was killed by an obsessed fan who tracked her down through driving records.

James Kehoe sued the bank for its purchase of the records, which he said it used to market car loans to drivers in Florida. EPIC joined the suit at a later date.

A district court in Florida found that Kehoe had to prove actual damage to him before he could be awarded financial damages. He appealed that decision and won.

Kehoe's class action lawsuit said that Fidelity Federal Bank and Trust had managed to purchase the data over a three year period to 2003 for just $5,656. EPIC filed a "friend of the court" brief in support of Kehoe's case.

"A narrow interpretation of the DPPA that does not award liquidated damages would create a risk that commercial data brokers will continue to acquire and resell personal information from motor vehicle records," said EPIC's brief. "Similarly, a private investigator might continue to access motor vehicle records unless there is a strong default punishment. Plaintiffs, unless they manufacture losses, face hurdles in showing that merely accessing the motor vehicle record or receiving junk mail constitutes an actionable harm.

"What people suffer from the unauthorised distribution of their private information is a privacy violation of a nature so elusive to quantify that it explains the DPPA's provision of a fixed minimum sum as appropriate compensation," the brief said.

EPIC erargued that unless the were financial damages awarded, the DPPA's usefulness as an anti-stalker law would be hampered. "Without liquidated damages, an individual whose personal information was purchased by a stalker or potential attacker would not be entitled to recovery until they were actually harmed," it said.

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

The next step in data security

More from The Register

next story
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Infosec geniuses hack a Canon PRINTER and install DOOM
Internet of Stuff securo-cockups strike yet again
THREE QUARTERS of Android mobes open to web page spy bug
Metasploit module gobbles KitKat SOP slop
'Speargun' program is fantasy, says cable operator
We just might notice if you cut our cables
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.