The Financial Services Roundtable (FSR), along with other financial industry representatives, in a joint letter outlined a number of steps Congress should consider as it holds hearings this week on safeguarding consumer financial data. While consumers enjoy “zero liability” in the event of a cyber attack or data breach, the costs for financial institutions can be extensive and it is important Congress consider several issues to improve protections for consumers.
“Protecting customers and the financial system from a cyber attack is at the top of mind for financial services CEOs,” said Tim Pawlenty, CEO of FSR. “The financial services sector has taken many steps to protect customers and is among the most prepared of all sectors. But we need to stay ahead of cyber attackers and it is critical that Congress move forward on cyber threat information sharing legislation.”
The letter outlined three steps Congress can take to help encourage the safeguarding of financial information:
1. Establish a national data security breach and notification standard, just as the Data Security Act of 2014 (S. 1927), introduced by Sens. Tom Carper (D-DE) and Roy Blunt (R-MO).
2. Make those responsible for data breaches responsible for their costs.
3. Share threat information across sectors in a protected fashion.