The Federal Trade Commission’s chairman has told the Senate Banking Committee that Congress must force data brokerage companies like ChoicePoint, LexisNexis, and others to protect their information from identity theft.
Current law, FTC chair Deborah Platt Majoras told the committee, is just not strong enough to guarantee such companies will handle information like Social Security numbers and similarly sensitive personal details. “I believe,” she testified, “there may be additional measures that benefit consumers.”
ChoicePoint was hacked to the tune of a reported 145,000 consumer profiles earlier this year, though some investigators are said to believe the actual number might have been higher. LexisNexis said this week that they were hit to the tune of 32,000 consumer profiles, and Bank of America reported losing a shipment containing sensitive personal information involving 1.2 million federal government customers, including sixty Senators.
And one Senator was only too well prepared to take action. Sen. Jon Corzine (D-New Jersey) plans to introduce a bill fining companies which don’t comply with FTC security standards, while a bill by Sen. Charles Schumer (D-New York) would require client screening by data brokers, as well as giving no more information than they need.
Another Senator would go even farther: Sen. Patrick Leahy (D-Vermont) wants the government to keep its business from any companies that “do not measure up.”
ChoicePoint has said they would scale back data selling and support congressional oversight and higher penalties for identity theft.
