Security Standards For Financial Information

A long time ago, processors of credit card information didn’t have any standards. And they’d lose your data. People didn’t like that, and some type of regulation had to be put on the industry. The credit card processors got together and formed an initiative to form their own regulations – PCI. They were a lot more concerned with the regulation’s impact on profitability than government regulations would have been. The PCI standards were fairly effective.

And now one of the credit bureaus has lost a huge amount of personal data – including social security numbers and account numbers that I don’t get why were stored in anything other than a one-way hash in the first place. But the bigger question is how are these credit bureaus able to operate with standards that are less strict than the industry-association generated PCI standards? My guess is that there will be a credit bureau industry association writing security standards in the next week or so. If there isn’t an industry association forming to ensure my social security number and account numbers aren’t stored in clear text on web-accessible servers at credit bureaus … I should hope the government would intervene and mandate a certain level of security.

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