ICBA called on Congress to strengthen data security by requiring entities that incur data breaches to bear the liability for their cost. In a statement for a House Subcommittee on Financial Institutions and Consumer Credit hearing, ICBA said banks take various steps to protect their customers’ accounts following a breach—but these costs should be borne by the entity that incurs the breach.
“This is not only a matter of fairness; a liability shift is needed to properly align incentives for entities that store consumer financial and personally identifiable data to strengthen their data security,” ICBA wrote.
In the statement and in a separate joint letter to subcommittee Chairman Blaine Luetkemeyer (R-Mo.) and Ranking Member Lacy Clay (D-Mo.), ICBA also advocated examination and supervision of credit reporting agencies, a national data security breach and notification standard, and other reforms.
Read ICBA Statement >
Read Joint Letter >