Today, U.S. Rep. John Carney (D-DE), a Member of the Financial Services Committee, and U.S. Rep. Randy Neugebauer (R-TX), Chairman of the Financial Institutions and Consumer Credit Subcommittee, introduced their bipartisan data security bill -- the Data Security Act of 2015 -- to protect consumers from identity theft and fraud. The bill, H.R. 2205, would establish a national data security and breach notification standard for financial institutions and retailers to better protect consumer financial data. Senators Tom Carper (D-DE) and Roy Blunt (R-MO) introduced a companion bill in the Senate.
“Consumers need to know that when they use their credit card to make a purchase, their personal information is secure,” said Rep. Carney. “Our approach makes the rules of the road clear for everyone involved. All the relevant parties – the banks as well as the retailers – will have skin in the game when it comes to preventing and cleaning up after data breaches. We can’t afford to wait for another massive data breach to occur. Congress needs to take up our bill as soon as possible to make sure consumers are protected in the event of another breach.”
“This legislation was crafted with three guiding principles,” Rep. Neugebauer. “First, any national standard must be technology neutral and process specific. This helps ensure the private sector can continue to innovate. Second, we need everyone at the table—all participants in the payment system must equally share in the efforts to protect consumer financial data. As we have learned from too many previous breaches, the system is only as strong as the weakest link. Finally, the standards we establish are scalable and well-tailored to avoid unnecessary burdens on small businesses. I look forward to working with my colleagues in Congress to quickly move this legislation to the President’s desk.”
To see a list of major data breaches over the past year, click here.
