Washington CU League Pushes Data Safety Bill

FEDERAL WAY, Wash. - The Washington CU League is pushing for a bill expected to be introduced in the state legislature soon that would make the costs associated with data breaches like the massive TJX debacle a responsibility of the merchant.

Sponsored by Rep. Brendan Williams (D-22) in the House and Senator Rosa Franklin (D-29) in the Senate, the bill was written by the Washington Credit Union League (WCUL). It requires merchants accepting plastic to reimburse card-issuing financial institutions for the costs associated with card re-issuance following a data breach.

The bill would also deter financial fraud and identity theft in three ways:

* By requiring businesses accepting plastic cards to encrypt or dispose of sensitive consumer data promptly;

* By making businesses storing sensitive consumer data who fail to meet basic security standards responsible for the costs of consumer notification and card replacement; and

* By establishing a safe harbor for businesses who meet basic security standards. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com