Hacking case shows U.S. vulnerability to breaches

By Ross Kerber And Daniel Trotta
18 August 2009 @ 06:13 pm ET
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Consumers and companies are vulnerable to hackers and identity thieves even after U.S. authorities arrested a man they said was a master hacker who stole 170 million credit and debit card numbers.


Albert Gonzalez, 28, of Miami, Florida, seen in an undated U.S. law enforcement handout photo, was indicted by U.S. authorities August 17, 2009 for conspiring to hack into computer networks supporting major retail and financial organizations, and stealing data relating to more than 130 million credit and debit cards. Gonzalez, also known as "segvec," "soupnazi" and "j4guar17," is charged, along with two unnamed co-conspirators with what the U.S. ... (REUTERS / U.S. Law Enforcement via Wired)
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Estimates on the total financial impact of breaches vary, but a study by Forrester Research put the cost at $90 to $305 per compromised record when considering the cost of upgrades, notifying customers and legal and marketing expenses.

"Under our banking laws, it's the financial institutions that will be stuck paying for fraudulent use of credit cards. We have the consumers responsible for $50 and the rest winds up on the card issuer," said Joel Reidenberg, a professor at Fordham Law School who teaches privacy law. READ MORE