Business leaders who fail to tell consumers when they may be at risk of identity theft could face jail under a bipartisan bill that is expected to be introduced in the Senate Wednesday.

Senate Judiciary Committee Chairman Arlen Specter and Sen. Patrick Leahy, the committee's top Democrat, would also restrict a freewheeling trade in Social Security numbers that are prized by identity thieves.

The bill comes on the heels of the largest security breach announced to date after an outsider gained access to nearly 40 million credit-card accounts held by CardSystems Solutions Inc., a payment processor.

Dozens of similar breaches have been disclosed this year after a California state law required businesses to make such incidents public.

Businesses and consumers have urged Congress to pass a national version of the California notification law.

Specter and Leahy's bill requires businesses across the nation to make data-security breaches public. Those that do not could face criminal prosecution.

The bill also would sharply limit the trade in Social Security numbers that can be used in identity theft.

Businesses would be unable to require consumers to reveal their Social Security numbers in return for goods or services, and they would be forbidden to buy or sell Social Security numbers without consumer permission.

Consumers would also be able to access the profiles maintained by "data brokers," such as ChoicePoint Inc. and fix any errors, as they are currently able to do with credit reports.

Businesses would have to protect consumer accounts from unauthorized access, and criminal penalties for such activity would be increased.

Members of the House are preparing efforts of their own. Rep. Joe Barton (R-TX), who chairs the House Energy and Commerce Committee, is working on a bill that would also limit the trade in Social Security numbers. Rep. Cliff Stearns (R-FL), who chairs a consumer-protection subcommittee, is drafting a bill that would include incentives for businesses to improve their security.

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