Wednesday, October 21, 2015

Experian data breach prompts questions and calls for investigations

By J. Preston Carter, J.D. LL.M.

Following the data breach of Experian’s computers holding 15 million files of T-Mobile customers and applicants, Congress and consumer privacy groups are urging investigations and pressing Experian CEO Brian Cassin for answers.

Senator Sherrod Brown (D-Ohio), ranking member of the Committee on Banking, Housing, and Urban Affairs, sent a letter to Cassin asking him to explain how the company is addressing vulnerabilities to its data security systems and consumers’ financial information.

“Experian has files on more than 220 million people. Protection of this information is of the utmost importance, especially because the scope of the information is vast and virtually no consumer can apply for credit without entering your system,” Brown wrote. “As we have seen repeatedly over the past few years, large companies are vulnerable to breaches of consumer information and the financial industry is a prime target for such attacks.”

Brown’s letter presents a list of eight questions related to the data breach for Cassin to answer.

A group of national and state consumer privacy organizations also has a list of questions, but these were presented to the Consumer Financial Protection Bureau and the Federal Trade Commission in a letter urging the agencies to investigate the Experian data breach. The organizations’ letter, released by U.S. PIRG, expresses “grave concerns” that Experian’s system may not be adequately protecting consumer records.

Meanwhile, Experian says it is continuing to investigate the theft, closely monitoring its systems, and working with domestic and international law enforcement. “Investigation of the incident is ongoing.”

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