There's a solution: personal liability for the executives and managers at the company, and for the investors.
For example, every person who has ever worked for IDScan at any level of management should have all lifetime compensation clawed back and then pay a further 2x of that in fines. All VCs in the company should face personal liability up to 10% of their net worth. (Fines should be based on net worth; see e.g., https://www.nytimes.com/2018/03/15/opinion/flat-fines-wealth...)
jm4 [3 hidden]5 mins ago
This is a little harsh. What about requiring companies to carry management liability insurance? Or to list individual managers on cybersecurity insurance policies? Premiums will rise when a company employs managers with claims history. Eventually, it becomes difficult to employ them in key positions if they have a bad track record.
dylan604 [3 hidden]5 mins ago
Who receives the payouts of those insurance benefits and how would one go about making a claim?
mahboi [3 hidden]5 mins ago
It's cleaner to hold some of a corp's money in escrow if they're handling IDs, to ensure they can't avoid fines via bankruptcy.
schainks [3 hidden]5 mins ago
This.
mccauley [3 hidden]5 mins ago
100%
curuinor [3 hidden]5 mins ago
Near the beginning of my career, I talked to a greybeard who harrumphed at me discussing something-or-other and said "computer security is an oxymoron". I thought he was being too pessimistic, nowadays I realize he was right.
drdaeman [3 hidden]5 mins ago
Human security. Computers are fine, they usually do exactly as they’re programmed.
curuinor [3 hidden]5 mins ago
We don't care about the computers, humans are what society is for
Equifax's stock price went up when they were hacked.
jmclnx [3 hidden]5 mins ago
Joking right :)
sandeepkd [3 hidden]5 mins ago
Its unfortunate that the security requirements are expected from the for-profit businesses when the cost of paying penalties for breach of security is way lower than actually implementing the security.
Ironically in case of breach they just sell you another of their product where you put your personal information again
FireBeyond [3 hidden]5 mins ago
The CRAs compete for breach business, because it's absolutely a profitable enterprise for them:
How many people actually sign up for your "free credit monitoring for a year" following a breach?
When you do, you typically do so by signing up for the highest tier (sometimes $30 or even $50 a month) product with a redemption code for one year free. You have to enter a credit card to do so, and to no-one's surprise, if you don't cancel in time, it automatically converts to a paid subscription "for your convenience".
There are many consumer protection farces in the US, but right up there has to be the notion that "identity theft" is the consumer's responsibility/obligation to prevent or resolve, not the entity that actually had the data stolen. You're considered liable until you prove innocence, even though you did nothing wrong.
This very nearly burned me when buying my home - having been an AT&T customer in the PNW for nearly two decades, "I" apparently decided to hit up a Walmart on the outskirts of El Paso, sign up for a Verizon service, run up two months of international calls and bail out.
Despite a police report, my utility statements, AT&T bills, etc. (all of which were, to be blunt, none of VZWs business), VZW stood by it initially, "On review of your documentation, we remain satisfied that this debt belongs to you based on the documents used to open your account".
I asked to see them, since they were, in VZW's own words, "mine". "We can't, for customer privacy reasons." Oh, so "mine when the bill needs paid, may not be mine for privacy purposes".
nullc [3 hidden]5 mins ago
The breach is bad no doubt-- but this information was already readily available to bad actors e.g. via Lexis Nexis. Practically all states sell DL and registration information to information brokers, and the remaining ones require you to obtain auto insurance, and the insurers all sell the information.
Many people pretend this isn't happening because of the "The Drivers Privacy Protection Act" but the DPPA is paper thin protection at best as it has a long list of permitted uses which anyone can just lie about (and are you worried about threats from parties so honest they're unable to lie?). Not that they usually have to lie given that the permitted uses include "For use by licensed private investigation agencies" and "For the bulk distribution of surveys, marketing materials, or solicitations"... In practice this just means accessing the information costs a little money and requires someone check a "this is for a permitted purpose" checkbox. The biggest impact is that it causes abusers of the information to be circumspect about their sources, which helps maintain the data-harvesting status quo.
(Guess what: the same databases also have ALPR gathered pictures of your car at whatever locations its been in public view... stores, your home, your mistresses home... Makes flock (YC S17) look pretty mild by comparison. The fundamental sin is requiring ID without also making it a crime for anyone but the owner and issuer to posses someone elses ID information.)
In some sense the IDScan breach may (ultimately) improve our privacy and security because it will break people out of the FALSE belief that this information is private, or that it can be protected by anything short of restricting its collection in the first place.
exabrial [3 hidden]5 mins ago
I really want these people handling my healthcare and other details about my life.
In my experience, any industry following a security standard halts all effort at security once they're compliant with the standard. HIPAA sets a minimum but seems to also guarantee you will get exactly that minimum and nothing better.
sidewndr46 [3 hidden]5 mins ago
The only thing HIPAA guarantees is that when your data is handed out, there was a policy around it.
Libcat99 [3 hidden]5 mins ago
And it will remain this was as long as the consequences of not protecting our data remain trivial.
paimapi [3 hidden]5 mins ago
if only we prosecuted corporations as people instead of just giving them the civil liberties of one
valleyer [3 hidden]5 mins ago
Which people? This leak was caused completely by private businesses.
iAMkenough [3 hidden]5 mins ago
Yeah, private businesses shouldn’t handle any healthcare or details about your life. /s
shireboy [3 hidden]5 mins ago
When this first landed I asked what the fix could even be. Everyone needs a new ID at a minimum. But then I got to thinking: 1) is that the point? Conspiratorial thinking I know but “hey all
Our ids got hacked I guess we need a national id”. And related 2) the current id system from a security standpoint was a band aid fix for outdated world to be shoehorned into a modern one. IDscan was never cryptographic proof you were who you said you were. Maybe better than “enter your name and SSN” but bottom line, at least in US there is no cryptographically secure identity system that proves you are the citizen you say. And that fact bleeds into all sorts of patchwork solutions, fraud, etc. Moreover there are serious philosophical hurdles to getting to one. I’m not even positive I want one. But unless there is some zero-trust way to do this, I’m not sure what the fix would be.
iugtmkbdfil834 [3 hidden]5 mins ago
And then, in real life, one discovers that institutions route around in creative ways for all sorts of different reasons ( recently had to 2fa a transaction at a god damn teller window; you just took my DL ).
charcircuit [3 hidden]5 mins ago
Hundreds of millions of American's names, addresses, social security numbers, etc were in the NPD leak which has been publicly downloadable. The idea that any of this information should be considered private, only knowable by the person themself is wrong.
For example, every person who has ever worked for IDScan at any level of management should have all lifetime compensation clawed back and then pay a further 2x of that in fines. All VCs in the company should face personal liability up to 10% of their net worth. (Fines should be based on net worth; see e.g., https://www.nytimes.com/2018/03/15/opinion/flat-fines-wealth...)
https://en.wikipedia.org/wiki/2015_Office_of_Personnel_Manag... was a National Security Disaster and I'm not sure we saw useful concrete changes.
Ironically in case of breach they just sell you another of their product where you put your personal information again
How many people actually sign up for your "free credit monitoring for a year" following a breach?
When you do, you typically do so by signing up for the highest tier (sometimes $30 or even $50 a month) product with a redemption code for one year free. You have to enter a credit card to do so, and to no-one's surprise, if you don't cancel in time, it automatically converts to a paid subscription "for your convenience".
There are many consumer protection farces in the US, but right up there has to be the notion that "identity theft" is the consumer's responsibility/obligation to prevent or resolve, not the entity that actually had the data stolen. You're considered liable until you prove innocence, even though you did nothing wrong.
This very nearly burned me when buying my home - having been an AT&T customer in the PNW for nearly two decades, "I" apparently decided to hit up a Walmart on the outskirts of El Paso, sign up for a Verizon service, run up two months of international calls and bail out.
Despite a police report, my utility statements, AT&T bills, etc. (all of which were, to be blunt, none of VZWs business), VZW stood by it initially, "On review of your documentation, we remain satisfied that this debt belongs to you based on the documents used to open your account".
I asked to see them, since they were, in VZW's own words, "mine". "We can't, for customer privacy reasons." Oh, so "mine when the bill needs paid, may not be mine for privacy purposes".
Many people pretend this isn't happening because of the "The Drivers Privacy Protection Act" but the DPPA is paper thin protection at best as it has a long list of permitted uses which anyone can just lie about (and are you worried about threats from parties so honest they're unable to lie?). Not that they usually have to lie given that the permitted uses include "For use by licensed private investigation agencies" and "For the bulk distribution of surveys, marketing materials, or solicitations"... In practice this just means accessing the information costs a little money and requires someone check a "this is for a permitted purpose" checkbox. The biggest impact is that it causes abusers of the information to be circumspect about their sources, which helps maintain the data-harvesting status quo.
(Guess what: the same databases also have ALPR gathered pictures of your car at whatever locations its been in public view... stores, your home, your mistresses home... Makes flock (YC S17) look pretty mild by comparison. The fundamental sin is requiring ID without also making it a crime for anyone but the owner and issuer to posses someone elses ID information.)
In some sense the IDScan breach may (ultimately) improve our privacy and security because it will break people out of the FALSE belief that this information is private, or that it can be protected by anything short of restricting its collection in the first place.