Blog

"Game Changer"

Obama is known for using terms like "game changer" when he campaigns or shares ideas.

Obama is known for using terms like "game changer" when he campaigns or shares ideas. However, the President just introduced a Federal breach notification bill that truly WOULD be a game changer. The majority of what's proposed sounds a lot like what's already out there, until this very significant portion: "The president's proposal also includes a financial fraud prevention exemption in which a business would be exempt if it participates in a security program that effectively blocks the use of the sensitive personally identifiable information to initiate unauthorized financial transactions before they are charged to the account of the individual and provides for notice to affected consumers after a security breach that has resulted in fraud or unauthorized transactions." This is very intriguing. It effectively goes after the root cause of why people would try to steal PII data in the first place. If you can't use the data for financial transactions (ie- opening a credit card account, opening a phone account, etc.) then the value of this information is greatly reduced. If this section stays in the proposed policy it will drive the financial services industry to use new technology (such as biometrics) and potentially change how things like credit bureaus work. We'll see how this shakes out...