Two
captains of the information-broker
industry recently told
a congressional panel
that they would support
new regulations to better
protect sensitive personal
data that they collect
and sell on virtually
every adult American.
But
the executives balked
at a growing bipartisan
consensus among key
House and Senate members
that the sale of Social
Security numbers for
commercial purposes
should be banned unless
individuals give their
permission.
"When
my Social Security
number and my information
is routinely given
out without my permission,
it's just wrong," said Rep. Joe Barton (R-Tex.), who heads the House Energy and Commerce Committee. "And in the Internet age, it's dangerous."
Barton
said Congress would
consider a measure
in which permission
would be required for
the trading or sale
of such data except
to law enforcement
agencies, in addition
to other steps in order
to increase oversight
of the largely unregulated
data-broker industry
that has been recently
rocked by a series
of security breaches.
ChoicePoint
Inc., one of the nation's
largest brokers, announced
in February that personal
information on nearly
145,000 consumers was
purchased from the
company by thieves
masquerading as legitimate
business people.
LexisNexis
Group, another big
broker specializing
in business and legal
data, announced last
week that thieves had
penetrated its systems
and obtained data on
32,000 consumers.
The
Chief executive of
LexisNexis Corporate
and Federal Markets,
Kurt Sanford, endorsed
a proposal by the head
of the Federal Trade
Commission that would
extend the same security
guidelines to data
brokers that financial
institutions must follow.
Sanford
also agreed with having
a federal law which
requires notification
of consumers if their
personal information
has been obtained by
thieves. Currently,
California is the only
state having such a
law.
But
Sanford said to ban
all sales of Social
Security numbers would
be a mistake, because "there are circumstances where the sale is in the consumers' best interests." For example, he said, independent investigative agencies might need such data
to help fight identity
fraud. Businesses,
he added, need it to
help collect unpaid
debts.
Derek
V. Smith, chief executive
of ChoicePoint, agreed. "I believe that only by adding a more formal structure to the current scheme of
information use will
we realize the value
of technology-based
tools to society," Smith said. Both he and Sanford used the hearing as a platform to apologize
to consumers whose
data have been compromised,
as well as to assure
Congress that they
have tightened their
systems to try to prevent
such fraud.
But
some members of the
House subcommittee
on commerce, trade
and consumer protection
were unimpressed by
the companies' efforts.
In
a series of rapid-fire
questions, Rep. Edward
J. Markey (D-Mass.)
pressed Smith on whether
he would lengthen the
credit-alert monitoring
period ChoicePoint
has offered to consumers
whose information was
stolen.
"What
about lifetime monitoring?" Markey asked. "One year is not enough. What about five years? Can you guarantee that?" He said thieves might simply lie low for a year before trying to access consumers'
accounts.
Smith,
appearing rattled,
said he would consider
extending the service
but declined to commit.
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