STRATEGIC PARTNERS
A consistent standard would better protect consumers in an increasingly sophisticated world of electronic commerce and record-keeping, the ABA says.
February 6, 2015
A uniform federal data breach law is needed to better protect consumers in an increasingly sophisticated world of electronic commerce and record keeping, according to testimony from the American Bankers Association before the Senate Commerce Subcommittee on Consumer Protection, Product Safety, Insurance and Data Security.
Doug Johnson, ABA Senior Vice President of Payments and Cybersecurity Policy, testified on behalf of ABA. Johnson opened his testimony by noting that notwithstanding recent retail data breaches, our payment system remains strong and functional.
However, he said, while the vast majority of transactions are conducted safely, consumers have a right to swift, accurate and effective notification when a data breach occurs.
"They also have a right to trust that, wherever they transact business electronically, the business is doing everything it can to prevent that breach from occurring in the first place," Johnson said,.
Johnson closed his testimony by expressing the banking industry's support for effective cybersecurity policy and its willingness to work with Congress to achieve that goal.
"Bankers are acknowledged leaders in defending against cyberthreats," Johnson said. "Therefore, from the financial services perspective, it is critical that legislation takes a balanced approach that builds upon — but does not duplicate or undermine — what is already in place and highly effective in the financial sector."
Read the transcript of Johnson’s full testimony.
