Feeds

Brussels to banks: Prepare for tougher data breach rules

Shocked commissioner hopes to improve consumer confidence online

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

European Commissioner Viviane Reding has warned banks that they will be required to notify customers about data security breaches.

A new bill which is expected to arrive in the autumn will be "very solid on rules", the Brussels Justice Minister and vice president of the European Commission told The Register yesterday.

Earlier that day in a speech to members of the British Bankers' Association (BBA), Reding said that all businesses operating in the European Union would soon be required to immediately inform customers about a "serious data security breach".

The BBA, for its part, claimed it already followed the "highest standards of customer protection in their data management", and so expected little impact from any such new law being introduced by the EU.

The commissioner admitted that the new rules could prove to be an "additional administrative burden" for the banking sector, but added it was necessary to help improve what is currently a tarnished image about the transfer of data online, with recent examples of major breaches taking place.

"We have had a lot of questions lately because of Sony Playstation and the latest now with Sega and in between all the others. So the consumer starts to have a real problem," she told El Reg.

"When there is a data breach I find it shocking that companies needed two or three weeks to inform people that their personal data had been stolen," she added.

"I have put it into the telecom package that it is obligatory on telecoms and internet access if a person’s data is breached, they should be informed at once. It’s normal, isn’t it?

"I will make that mandatory everywhere in this new data protection reform. All personal data breach notification across all sections including banking and financial services."

She said it was essential for companies that conduct their business online in the EU to offer a guarantee that they will inform their customers of a data breach immediately when it happens.

“Don’t look at regulation only from the point of view of problem-building. A non-invasive, down-to-earth regulation is problem-solving. It makes the internet trustworthy," Reding told us.

"It should be normal but it isn't. So we need to come out of the wild west and come to regulations that are clear to everybody that give businesses the certainty they are asking for." ®

Designing a Defense for Mobile Applications

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
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.