40 Million Credit Card Numbers Stolen – Failure To Encrypt

Written by Richard A. Chapo

CardSystems Solutions moronic security efforts have resulted inrepparttar potential theft of information for 40 million credit cards. Hackers were able to install a rogue program, probably a Trojan, inrepparttar 144266 CardSystems security network. This program captured credit card information includingrepparttar 144267 cardholder’s name, account number and verification code.

CardSystems Solutions is an Atlanta-based company. Prior to this incident, it processed approximately $15 billion dollars in credit card transactions each year. Small businesses wererepparttar 144268 primary users ofrepparttar 144269 system. The FBI and MasterCard International have launched investigations intorepparttar 144270 hack. It has become apparent CardSystems Solutions should be charged with gross negligence. The company failed to comply with MasterCard security regulations and failed to destroyrepparttar 144271 information of cardholders after prescribed time periods.

In a matter of gross incompetence, CardSystems failed to encrypt any of credit card data for users. This isrepparttar 144272 equivalent of your bank sending monthly account statements will allrepparttar 144273 information printed onrepparttar 144274 outside ofrepparttar 144275 envelope. It is simply inexcusable and has led to potentiallyrepparttar 144276 biggest theft of financial information in history.

California Financial Privacy Law Partially Invalidated

Written by Richard A. Chapo

The 9th Circuit Federal Court of Appeals has dealt a blow to privacy advocates by invalidating a California privacy law. In litigation brought byrepparttar American Bankers Association and others,repparttar 144265 appellate court overruledrepparttar 144266 finding of a trial judge thatrepparttar 144267 California law could stand. Instead,repparttar 144268 appellate justices foundrepparttar 144269 law to be pre-empted in part byrepparttar 144270 federal 2003 Fair and Accurate Credit Transactions Act.

When a state law conflicts with a federal one,repparttar 144271 federal law takes precedent. For instance,repparttar 144272 Supreme Court has ruled abortion to be constitutionally protected. No state may pass anti-abortion laws and have them enforced.

The question at issue inrepparttar 144273 California law was a section giving California residentsrepparttar 144274 right to block financial institutions from selling their private information to third parties.

A San Francisco trial judge, Morrison C. England, Jr., had ruledrepparttar 144275 section conflicted with provisions ofrepparttar 144276 Fair and Accurate Credit Transactions Act, but was not pre-empted becauserepparttar 144277 federal law allowed for stricter state laws. The 9th Circuit court disagreed.

Cont'd on page 2 ==>
ImproveHomeLife.com © 2005
Terms of Use