Castle: Consumers Must Be Protected From Data Security Breaks

Castle: Consumers Must Be Protected From Data Security Breaks

Castle, House Financial Services Committee Evaluates Data Security Breaks

WASHINGTON, DC - With the recent number of high-profile cases of compromised data files at well-known companies, Delaware Congressman Mike Castle participated today in the House Financial Services Committee's hearing entitled "Assessing Data Security: Preventing Breaches and Protecting Sensitive Information." With more sensitive information part of the everyday exchange of records among business and government, Castle, along with the House Financial Services Committee, sought to address concerns about data security policies and post-breach procedures.

"It is a fact that today we live in a world that is increasingly reliant on technology and dependent on data for instant decisions. Therefore, it is worthwhile for us to explore the practicality of requiring database security safeguards for most of the public and private sectors. While our financial institutions, as defined by federal statute, are already required to secure their sensitive data, it may be that we should do likewise across other sectors," said Congressman Castle.

"Unfortunately a number of "data breaches" have come to light over the past few months. I think it is important we understand the situations surrounding each breach and learn how some of the companies testifying before us today took steps to remedy these situations. For example, some have provided free credit monitoring for all those that were subject to the breach and I think this is an enormously positive step that helps consumers and restores confidence and peace of mind to many," said Castle.

"In the coming weeks, I am planning to introduce a comprehensive bill that, in part, requires many more databases to have a standard level of protection. In addition, I am working to define what constitutes a breach so that effected entities, regulators and consumers, can be notified when appropriate and in a coordinated manner," said Castle.

Victims of identity theft, which can include damaged credit records, unauthorized charges to credit cards, and unauthorized withdrawals from bank accounts, spend on average 90 hours of their own time and $1,700 in out of pocket expenses resolving the problem. In some cases, victims have to change their Social Security numbers or phone numbers in order to free themselves of the effects of identity theft.

http://www.house.gov/castle/pr_05_Data%20Bases.html