Congress and Identity Theft

It looks like Congress is at it again - taking a bad situation and making it worse, yet calling it better.

According to Robert Vamosi, Senior Editor at CNET, Congress is looking at legislation (HR 4127) to "ensure that personal data are accounted for, secured, and actively protected against breaches by empowering consumers and businesses to promote the notion that security sells." See this article at http://reviews.cnet.com/4520-3513_7-6381707.html

Right now, the State of California has a law, SB 1386, which requires any organization doing business with California residents to notify those individuals should files containing their personal information like names, addresses, and other goodies you don't want out there have been breached.

This has happened millions of times since the law was enacted in 2003. These notifications have been embarrasing and costly to companies such as Visa and Mastercard. According to Vamosi, the FTC estimates that data breaches cost businesses about $48 billion last year. And, as he reports, it's the cost to businesses, not individuals, that appears to have motivated Flordia Republican Cliff Stearns to push through his recent changes to HR 4127, a.k.a. the Data Accountability and Trust Act (DATA).

Under the leadership of Congressman Sterns, the House DATA bill (which, as a Federal bill, would supercede SB 1386) would require companies to contact customers only when there is a "reasonable basis to conclude that there is a significant risk of identity theft."

Yes, no automatic or compulsory disclosure would be required. Just a threat, as defined by the company with billions to lose if the word gets out.

Hardly a day goes by when we don't hear about someone who is suffering from identity theft. It is growing at an alarming rate every year, and our protectors in Congress want to keep companies, but not consumers, safe? I guess the old saying is true - the opposite of progress is Congress.