Debit/Credit Card Security Breaches Kept Secret

This article examines the recent rash of debit and credit card security breaches and how cardholders are kept in the dark about them. It seems that current law offers many loopholes for card companies to withold such information from their clients and worse yet, our bought and paid-for so-called representatives in congress are about to make it even easier for such information to be witheld from consumers.

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.

Once again it is obvious whose interests Washington is serving and it is not the average citizen’s.

Here is what Ed Mierzwinski had to say about the bill on his consumer blog:

The bill establishes weak duties to protect confidential consumer DNA yet grants broad discretion to ignore telling us when banks or other companies lose it. The bill gives identity theft victims only, but not everyone, a clunky consumer-unfriendly right to place a security freeze on their credit report. It then preempts the 8 states that give every consumer the right to a security freeze. Among these is New Jersey’s freeze, which is the most streamlined and consumer-friendly. The bill preempts all stronger state protections in a broad array of identity theft areas.

He who controls the data controls the universe.


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