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Possible legislation could send CEOs to jail for lying about security following a data breach
As a merchant you do not want to have a data breach happen to you. Unfortunately too many have been happening. There have been all kinds of reasons for them happening but most have been because of lax security or a failure to update software. So far the only penalty that is in place for a data breach comes from the consumer for the most part but that could be about to change.
Ron Wyden, a Democratic Senator from Oregon, has grown frustrated with the number of data breaches that have been occurring just like every American has. The difference is he has the power to do something positive about it. Wyden has been a leader on cybersecurity and privacy issues and during the last Congressional term introduced legislation regarding data breaches.
The Consumer Data Protection Act singles out companies that make more than $50 million in revenue and have the personal information on one million people or more. The bill calls for giving the FTC more power to take on privacy violations and would require those companies to submit an annual report signed by the CEO. A national Do Not Track list would be set up allowing consumers to opt out of having their data collected. The FTC would be able to fine violators up to 4% of the companies annual revenue for violations. The biggest eyebrow raiser though was that if the CEO signs a report that is knowingly false they could face up to 20 years in prison.
It is a shame that it will take Congressional legislation to get some companies serious about data security. Many already do take it seriously but all it takes is one failure. This has been an issue that should receive bipartisan support but with not only the change in Congressional terms but the fallout and finger pointing that comes from the government shutdown who knows if legislation can be passed. Or who knows, an issue like this could be an olive branch that could bring both sides together.
While your business may not be included legislation like this could be just the beginning. Do you know what the best way to avoid data breaches is? Meet and maintain PCI Compliance! Do it like your business depends on it, because it does. If you need help with this give JLE Business Consultants a call.
