From: USA Today
Donna Leinwand Leger
WASHINGTON — The Obama Administration recommends a uniform federal standard requiring businesses to quickly report thefts of electronic personal information, acting Assistant Attorney General Mythili Raman told a Senate Judiciary Committee hearing Tuesday.
The hearing explored ways to combat cyber crime after massive data breaches at major retailers including Target, which announced it is spending $100 million to expedite transition to “smart” cards with computer chips from the standard magnetic strip credit and debit cards.
“Businesses should be required to provide prompt notice to consumers in the wake of a breach,” Raman said. “American consumers should know when they are at risk of identify theft or other harms because of a data security breach.”
Executives from Target and Neiman Marcus also testified, detailing their responses to recent breaches. Neiman Marcus Senior Vice President Michael Kingston said the company first learned of a possible problem from its credit processor on Dec. 17 when Mastercard told the retailer that 122 fraudulently used credit cards had last been used at Neiman Marcus.
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