ID Theft Protection At Center Of Leaders’ (in)Activity
Government leaders are trying to strengthen identity theft protection measures - or are they? Anyone who has ever worked in retail knows that credit card numbers are no sacred cow. They are often barely even protected. In my first high school job for a clothing retailer, I was that cashier who never asked for ID to verify the validity of a credit card … until a fellow cashier caught an identity thief one-handed. Now I am extremely grateful every time a cashier asks for my identification.
A recent Visa study revealed that restaurants are a main conduit for identity theft. The answer? Visa has “urged” restaurants to install stricter security measures on computers, which commonly fall victim to hackers. There haven’t really been any serious, straightforward crime and punishment guidelines to truly motivate retailers to stop enabling identity thieves - particularly for smaller merchants. But that might be changing.
The Minnesota legislature’s Plastic Card Security Act prohibits companies from storing sensitive credit card data. It also holds merchants accountable for identity breaches such as fraudulent purchases, requiring merchants to reimburse banks and other card issuers for all ensuing costs directly caused by the security breach. It is a move that leaders hope will incent merchants to be more protective of transaction data and a little more watchful of customers.
Texas and California are also crafting similar bills, but California’s legislation was vetoed Saturday by Gov. Arnold Schwarzenegger after unanimously passing the state assembly. The governor sent the bill back to the drawing board, claiming the legislation was repetitive of other oversight measures already in place. However, critics are saying current California law is not enough motivation for retailers, that stiffer penalties and government oversight are needed.
It’s an interesting issue, and one that has been a long time coming. Politics and lobbyists will inevitably muddy up the waters, but such legislation will only help consumers and it will ultimately help retailers as well.
