|
The bill would impose potentially significant fines against
companies like Equifax, TransUnion, and Experian if their cyber
security fails to ward off hackers trying to obtain sensitive
data. It also would establish a new Office of Cybersecurity at
the Federal Trade Commission, and charge it with monitoring
cyber security at those companies.
Senators Mark Warner and Elizabeth Warren's bill is in response
to a data breach at Equifax that put the information of 145
million Americans at risk. The bill faces an uphill climb in a
Republican-led Congress, but if it became law, would allow the
government to fine as much as 75 percent of a credit reporting
agency's gross revenue should a hack occur.
"Our bill imposes massive and mandatory penalties for data
breaches at companies like Equifax – and provides robust
compensation for affected consumers," Warren said in a
statement.
The bill would fine a company $100 for each consumer that had a
piece of personal information compromised in a data breach, with
an additional $50 for each additional piece of data put at risk
for each consumer. Those fines could add up to 50 percent of a
company's gross revenue.
But, that penalty doubles if company fails to disclose the
breach to regulators in a timely manner or has insufficient
cyber security in place, and can add up to as much as 75 percent
of a company's global revenue for the last fiscal year.
(Reporting by Pete Schroeder; editing by Grant McCool)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
