Data Security - What are the Responsibilities?

[Ike_Witt]

It seems like just about every week there is something in the news about a company that has had its records hacked and data on individuals stolen. Recent stories include LexisNexis theft much worse than thought and Ameritrade warns 200,000 clients of lost data.

What responsibility does Ameritrade or LexisNexis have to protect their client information? Are the companies liable for any losses incurred by people who have had their information stolen? I see that there is a class action lawsuit forming against LexisNexis, can people who were not harmed by the data theft really expect some sort of compensation?

Considering that people are not going to stop stealing things, do laws adequately protect consumers?

[Ike_Witt]

Can I have a mod move this to GQ please?

[SkipMagic]

Moved to GQ at the request of the OP.

• SkipMagic
  Wandering MPSIMS Moderator

[ouryL]

@adam yax

It seems like just about every week there is something in the news about a company that has had its records hacked and data on individuals stolen. Recent stories include LexisNexis theft much worse than thought and Ameritrade warns 200,000 clients of lost data.

What responsibility does Ameritrade or LexisNexis have to protect their client information? Are the companies liable for any losses incurred by people who have had their information stolen? I see that there is a class action lawsuit forming against LexisNexis, can people who were not harmed by the data theft really expect some sort of compensation?

Considering that people are not going to stop stealing things, do laws adequately protect consumers?

Laws do not protect as much as punish. Once the birds are out of the cage, there is no easy way to get them back in. One cannot unbreak an egg.