Citi Breach Helps Push for Federal Data Security Rules

By Davidson, Kate | American Banker, June 22, 2011 | Go to article overview

Citi Breach Helps Push for Federal Data Security Rules


Davidson, Kate, American Banker


Byline: Kate Davidson

WASHINGTON - The Obama administration's push to create a national standard for when and how banks and other companies must notify customers of a data breach appears to be gaining momentum.

Financial services representatives told a Senate panel on Tuesday that they would support the White House's proposal, which would, among other things, combine a patchwork of 47 state laws on the issue into a federal standard.

Senate Banking Committee Chairman Tim Johnson also appeared supportive of strengthening cybersecurity laws, saying recent high-profile data breaches within the financial services sector and elsewhere underscore the importance of the issue.

"Breaches are disruptive and raise the potential for financial fraud, identity theft and, potentially, severe threats to our national economic security," Johnson said.

Citigroup Inc. was the most recent high-profile data breach, after it disclosed that a hacker had accessed customer information for more than 360,000 credit card accounts last month.

Lawmakers have criticized Citi for waiting nearly a month to disclose the breach. Citi said it discovered the breach on May 10 during routine maintenance, but didn't begin notifying customers until June 3.

Sen. Robert Menendez, D-N.J., said there have been 288 publicly disclosed breaches at financial services companies in the past six years that exposed at least 83 million customer records.

"I'm concerned about what are the financial institutions doing, No. 1, to enhance their position against cybersecurity attacks, and No. 2, when there is a breach, what are they doing in their fiduciary responsibility to notify their customers of those breaches," said Menendez, who introduced his own cybersecurity bill earlier this month.

He pressed witnesses to say whether Citi should have come forward sooner.

Leigh Williams, the president of BITS, the technology policy division of the Financial Services Roundtable, said banks have a responsibility to notify customers of breaches as quickly as possible.

"I think that as soon as an institution understands what has occurred, they have an obligation to notify their regulators under regulatory rules," Williams said. "And they have a fiduciary and a business responsibility to notify customers if there is any way that the customer can begin to take action to protect themselves."

Williams said the industry has invested tens of billions of dollars in cybersecurity and is continually improving its ability to repel cyberattacks. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Citi Breach Helps Push for Federal Data Security Rules
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.