Data privacy and protection legislation working its way through Congress.

In the wake of the millions of cases of consumer and business financial records--such as credit and banking account information--being stolen through the Internet, the 109th Congress is considering a number of Bills that would help safeguard this data. Most of these Bills place requirements and restrictions on businesses and nonprofit organizations that maintain personal, computerized data that is linked with financial information such as a credit card, checking or savings account. Such requirements include informing individuals when databases, in which they were included, were compromised or stolen. Holders of this data would also be required, under most of these Bills, to take steps to prevent unauthorized access or theft of such data. Many of these Bills prescribe penalties for failing to take appropriate, required measures to safeguard the data and inform individuals when their information was stolen or possibly compromised in any way.

Jim Wise, Legislative Representative for NACM, believes that it is likely before the end of the term of the 109th Congress--that will run through most of 2006--one or more of these Bills will become law. "I don't have any doubt in my mind that we're going to get something passed." Wise said that Congress will likely be busy with the hearings on the National Security Agency's reported eavesdropping of U.S. citizens ...