Mass. bill would make retailers pay for data breaches

Friday, 23 February 2007, 12:45 AM EST

Lawmakers in Massachusetts are poised to consider legislation that would force retailers who suffer data breaches to cover the costs associated with any fraud-related losses by their customers.

The bill, sponsored by Rep. Michael A. Costello (D), would make any company (retailer, bank or data processor) financially liable if it is the operator of the system that is hacked. The bill doesn't cover other types of credit-card fraud, such as those perpetrated by means of a lost or stolen card."

At Security Fix.

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