Proposed legislation would punish companies for weak response to data security breaches
New legislation being introduced in the U.S. Senate would punish companies that carelessly permit online data security breaches that compromise consumer privacy. The bill, which is called the Personal Data Protection and Breach Accountability Act of 2011, is intended to protect privacy and online data security.
If passed, the bill would require affected businesses to comply with a set of guidelines to ensure that all of the personal data that they store is properly protected from breaches. Companies that fail to follow the rules would be at risk of paying expensive fines to the government. Only businesses that store online information for more than 10,000 people would be affected by the law, according to several reports.
However, regulatory compliance isn’t the only reason that businesses should take measures to ensure data security. In the age of online shopping, IT security can mean the difference between making a sale and losing one.
A recent survey released by McAfee found that two-thirds of consumers are not certain about ecommerce security.
"Online retailers who ignore the role security plays in converting digital window shoppers to customers are missing out on billions of dollars they can`t afford to lose in this economy," according to McAfee senior research analyst Shane Keats.