Somebody Stop Them Please!
Jennifer McAdams at ComputerWorld wrote a story entitled "After a Data Breach: Navigating the tangle of state notification laws can be exasperating -- and costly ."
According to the story, conflicting state notification regulations are causing headaches for companies that have suffered a security breach. These regulations are designed to let consumers know that their vital information -- information that they trusted the company to protect -- has been compromised. Many of the companies that experience such data breaches wish there were a single regulation for notifying their customers.
Alas! No such national regulation currently exists, and Congress doesn't seem inclined to take up the issue.
A new opportunity for a financial service!
To my mind, this is a bit reminiscient of national/international debate over spam and computer virus infections and how our economy and political systems react to technological crime: Congress will ignore the issue until some highly visible security breach creates massive loss for thousands of citizens.
By that time, however, there will be hundreds of Internet companies whose sole business is notifying customers that their security has been compromised. Microsoft will have already created a module within Outlook that will field these email notifications.
Outlook in turn will be interfaced to QuickBooks, which will transparently send a notification to the various credit card companies to stop payment on all items that are not validated in its QuickBooks database.
The credit card companies will offer a service to electronically reissue a new credit card, on the spot, which will be sent immediately by FedEx. Of course, the consumer will be charged $5.00 for this service, and the credit card won't be sent to you immediately. But you will have the choice to expedite the shipment of the new credit card by agreeing to a slightly larger fee fee of about $25.00. Of course, these fees will be added on to the usual credit card statement automatically.