Data Security Standards May Become More Complex

March 10th, 2008

The Federal Trade Commission’s recently-released report, “Consumer Fraud and Identity Theft Complaint Data,” shows that for the seventh year in a row, identity theft was the number one consumer complaint category. Recent high profile breaches such as the one at TJX Co. – the parent of retailer T.J Maxx – have served to further intensify the public and regulatory scrutiny focused on the issue. This issue of data security will continue to present difficulties for both the creditor and ARM community.

The already fractious regulatory landscape is worsened by the possibility of further legislative change. As businesses continue to grapple with how best to comply with the existing federal regulations laid out in the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act, and the Fair and Accurate Credit Transaction Act, several bills introduced into the 110th Congress carry the potential to alter data security regulations, including:

  • The Federal Agency Data Privacy Protection Act (H.R. 516)
  • The Data Accountability and Trust Act (H.R. 958)
  • The Data Security Act of 2007 (H.R. 1685)

Whether or not additional legislation will prove more effective at addressing data security concerns is debatable. What is certain is that the issue has yet to be remedied for either the private sector or the federal government, as evidenced by the accidental, unauthorized release of information by the Department of Veterans Affairs in 2006.

As it stands, the risk to reputation associated with a data breach, along with the legal ramifications of noncompliance, have pushed the development of a number of standards, but these same forces have also added to the complexity and costs associated with compliance. Whether these costs become prohibitive should be of concern to the financial services industry.

In sum, data security continues to be a vexing problem for both creditors and the ARM industry, and though no uniform standard exists, the cost and liability associated with compliance should continue to push the discussion of creating such a standard.

For more information, contact us at hq@kaulkin.com.

Comments are closed.

LATEST BLOGS

Family Vacations: A Time to Unplug from the Digital World

August 17, 2017

As I approach the half century mark, I find myself appreciating family vacations more than ever before. Last week, we went on an Alaskan cruise in which internet access was not provided unless the passenger paid separately for it. I quickly learned how precious family vacation has become. Were you able to pull yourself away from the internet on your family vacation this year?....

» see this post    » all posts


Large Healthcare Market Participants Continue to Endure

August 15, 2017

As part of our KG Prime market intelligence series, we recently examined and retrieved data from the largest players in the U.S. healthcare market. After doing so, we suggested various takeaways for the ARM and RCM industries based on company-specific and market-wide data. ....

» see this post    » all posts


Earn-outs: A Necessary Evil in Business Transactions or a Valuation Bridge between Buyers and Sellers?

August 10, 2017

Most business owners who are contemplating the sale of their business tell us they are vehemently opposed to a transaction structure that includes an earn-out component. When asked why, the typical answer they give is that earn-outs never materialize. So, why do earn-outs exist?....

» see this post    » all posts


RECENT ANNOUNCEMENTS

Kaulkin Ginsberg Announces the Acquisition of Remit Corporation by Eastern Revenue

August 17, 2017

Kaulkin Ginsberg Company announced today the acquisition of Remit Corporation, a well-established regional collection agency founded by Harry Strausser III, and based in Bloomsburg, Pennsylvania, by Eastern Revenue, Inc.....

» see more




Mike Ginsberg to Discuss Trending Topics at ARM Events this Fall

August 15, 2017

Join Mike Ginsberg at the Debt Connection Symposium and the Receivables Management Conference this fall as he discusses important issues surrounding the ARM industry.....

» see more




Kaulkin Ginsberg Moves Its Market Intelligence Online

June 8, 2017

Kaulkin Ginsberg is changing the way busy owners, executives, and senior leaders access strategic market intelligence with the launch of KG Prime. KG Prime is a comprehensive and easy to use web-based service that provides users with economic, market segment, and other forms of strategic research.....

» see more