WASHINGTON – Sens. Elizabeth Warren, D-Mass., and Mark Warner, D-Va., are set Wednesday to introduce a bill that would create mandatory penalties for data breaches at credit reporting agencies.
“Our bill imposes massive and mandatory penalties for data breaches at companies like Equifax – and provides robust compensation for affected consumers – which will put money back into people’s pockets and help stop these kinds of breaches from happening again,” Warren said in a press release.
The Data Breach Prevention and Compensation Act would set mandatory fines at $100 for each consumer who has a piece of personally identifiable information compromised and another $50 for each additional piece of personal identifiable data. The penalties would be capped at 50% of the credit reporting agencies’ gross revenue from the prior year – except in cases of extreme negligence, in which case the fine would go up to 75% of the companies’ prior year gross annual revenue.
Read the full article on the American Banker website here.