Group Of Banks Sues TJX Over Data Breach

from Techdirt by Joe

One of the reasons that big data breaches, such as the one at TJX, keep occurring, is that there aren't sufficient incentives in place for companies to take this issue seriously. The key then is to develop ways for companies to see value in data security, and to be properly punished for their carelessness. At this point, the government doesn't seem to be doing much on this account, and even if it tried to do something, there's no guarantee that it would be effective, since many government regulations fail to achieve their desired goals. Now, a group of New England banks have filed a lawsuit against TJX, in hopes of receiving compensation for their own expenses from dealing with the situation. Their complaint seems legitimate since it's known that the breach has contributed directly to fraud, which is something that the banks themselves have to combat. As one representative from the group put it, "Right now we've had major breaches from major retailers, and there's very little recourse and little incentive for them to change." While the tort system is often abused, it can be used by legitimately injured parties to get compensation. If the banks are successful in winning damages, it's likely to open up a new (and hopefully effective) avenue in punishing companies that mishandle their data.

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Got A Good Credit Score? Rent It To Someone In Need

from Techdirt by Joe

One of the common consequences for victims of identity theft is that they can see their credit scores get damaged, and because the big credit agencies don't offer much help in monitoring and fixing this, it can be a major hassle to get the problem resolved. Barry Ritholtz to an interesting story about a different kind of fraud, whereby people with good credit scores can sell their credit histories to people who want their own score boosted. Basically, the law states that people are allowed to add an unlimited number of individuals to their credit card accounts; it's mainly intended for parents who want to put their kids on the account. But, various websites have emerged to take advantage of this loophole, enabling people with bad credit histories to improve their score by getting access to a good credit history. It's not clear how widespread this actually is, but it pretty clearly violates the whole point of a credit score, since it's supposed to give the lender some idea of how reliable the borrower is. Fair Isaac, the company that developed the FICO score, says it's currently in talks with the FTC to stop the practice. The question, then, is whether shutting down this loophole will do the trick, or whether credit history brokers will simply find another loophole.

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Zipcar + ParkatmyHouse

from PSFK Trend: PSFK by Jeff Squires

London is host to one of the coolest and most functional partnerships we've seen recently. A collaboration that lets people share cars and parking places! It's hard to believe it's taken so long for something like this to come around...

ParkAtMyHouse is a new service that provides affordable and penalty-free parking around public venues by enabling property-owners to rent out their empty driveways, garages, car parks and other spare pieces of land to drivers needing somewhere to park. Anyone can register to rent out their parking space to consumers and/or businesses.

The new service has just partnered with ZipCars - another progressive company that allows users to rent cars by the hour or day. Users can book a Zipcar online or over the phone at any time, any day of the week. Then all you have to do is walk to the nearby car, unlock it by swiping your unique Zipcard across the windscreen and drive away with the minimum of fuss.

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