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Speaker Johnson calls for security breach hearings By Ivan Shadis Nov 2 2017, 7:36 PM 1 Comment Mitzi Johnson House Speaker Mitzi Johnson discusses the state’s response to the Equifax data breach. Photo by Mike Dougherty/VTDigger House Speaker Mitzi Johnson announced Thursday a series of data security hearings to be held across the state in the wake of the Equifax breach earlier this year. The public hearings will be hosted by the House Committee on Commerce and Economic Development on Nov. 9 in Springfield and Barton and Nov. 14 in Manchester and Burlington. The hearings will give the public an opportunity to learn about the current law relating to security breaches and to share their own experiences. The hearings were scheduled after the personal and financial data of more than one-third of Vermonters was accessed, according to Johnson. “The breach included birth dates, addresses, Social Security numbers, and some driver’s license and credit card information of up to a quarter-million Vermonters. That’s a third of us,” said Johnson, D-South Hero, speaking at a press conference Thursday. Equifax is under investigation by the Vermont attorney general’s office for its failure to report the breach as required by state law. State statute requires that suspected data breaches be reported to the attorney general within 14 days and to the consumer within 45 days. Equifax says it first became aware of the data breach, which affected over 140 million Americans, at the end of July — but it did not notify the state until Sept. 7. “It’s preposterous it would take so long to do that,” said Johnson, who added that it was the “No. 1 priority” of the Vermont House to protect Vermonters’ information from being stolen. Johnson said dysfunction in Washington meant that agencies like Equifax would “get away with little more than a slap on the wrist” unless the state stepped in. “We have to hold them accountable here in Vermont,” said Johnson. Sen. Michael Sirotkin, D-Chittenden, told reporters he had drafted a bill that would give the state more power to hold credit reporting agencies accountable for damages resulting from a data security breach. “Consumers will have a private right of action where they will get their damages for their time and expense and their attorneys fees,” said Sirotkin. Equifax initially required people whose data had been breached to pay a $10 fee to freeze their credit report, a step that makes it more difficult for thieves to open new accounts under stolen identities. Equifax has since waived the fees through Nov. 21 in response to public backlash. “I was appalled to hear that Equifax and others were going to possibly charge consumers to fix the problem that they had caused and profit from the misconduct that they committed,” said Sirotkin, whose bill would also prohibit credit reporting agencies from charging fees to “fix the problem” when the problem is caused by the agency’s misconduct. Sirotkin’s bill is expected to be joined by others prompted by the Equifax breach in the upcoming legislative session. “We expect several bills to be introduced into the House and Senate for immediate consideration in January,” said Johnson. Rep. William Botzow, who chairs the House Committee on Commerce and Economic Development, hopes the hearings this month will help shape this legislative response. “We want to hear from people what their experiences are, what their concerns are, what their questions and what their suggestions may be … that may ground us in what you have heard is a very large and significant problem,” said Botzow. Botzow, D-Pownal, said his constituents have not been satisfied with the steps available to them since the breach. “Many people I’ve talked to say no, they don’t feel better off for engaging in the curative process that we have today. That’s a problem right there.” Information and resources for Vermonters affected by the breach are maintained by the attorney general’s Consumer Assistance Program. “In the aftermath of the disclosure on Sept. 7, our Consumer Assistance Program received over 700 phone calls in the first week alone. It was all hands on deck in our office,” said Christopher Curtis, chief of the Public Protection Division at the Vermont attorney general’s office, which oversees the program. “People are angry, and they should be, because they didn’t do anything wrong — and this company should be moving heaven and Earth to make it right for people.” Curtis said he could not comment on the investigation into Equifax as it was ongoing, but said two recent settlements reached with companies over possible violations of the state’s data breach laws show the attorney general’s office is committed to enforcement. The state recently settled for $264,000 with Samange for a breach related to Vermont Health Connect and for $300,000 with Hilton Domestic Operating Co. for failing to report a breach of credit card information. “We do hold these entities to account, and they have resulted in penalties for the state of Vermont under those laws,” said Curtis. But with a legislative response still months out and the attorney general’s investigation ongoing, at least one Vermonter has taken it upon herself to see Equifax answer for the breach. Randolph librarian Jessamyn West filed a complaint against the company in small claims court. West is seeking $5,000 in damages, including for emotional distress, caused by what she called in her summons Equifax’s reckless behavior. Equifax has denied the allegations, and a court date has been scheduled for Jan. 17. Attorney General TJ Donovan said he was not aware of West’s case but said it resonated with what he felt was Vermonters’ wish to take control of their lives. “That visceral feeling, what that says is I want to reassert control over my life — that’s what this is about,” said Donovan. “This is about giving Vermonters control. This is about giving power back to the folks of this state.” Vermonters who notice suspicious activity on their credit cards, or are receiving strange phone calls or emails, are asked to report these incidents to the attorney general’s Public Protection Division at 800-649-2424. The following is the schedule of hearings: Nov. 9: Springfield Town Offices, 96 Main St., 12:30 p.m. Nov. 9: Barton Village Office, 17 Village Square, 5:30 p.m. Nov. 14: Manchester Community Library, 138 Cemetery Ave., 12:30 p.m. Nov. 14: Department of Health, 108 Cherry St., Burlington, 6 p.m. Legislators holding hearings following Equifax breach SPRINGFIELD, Vt. — In response to the mid-September Equifax data breach, lawmakers in Vermont are holding a series of public hearings ahead of the legislative session, where legislators expect to introduce several bills in January. Springfield is set to host the first of these hearings late next week. The breach in the national credit reporting agency’s security system included the birth dates, addresses, Social Security numbers, and some driver’s license and credit card information of up to 240,000 Vermonters. Although the breach occurred in June, it was not reported until September. “Personal information theft is a serious crime that has long-term, far-reaching consequences,” said House Speaker Mitzi Johnson in a statement Thursday. “It is a number one priority of the House to ensure that Vermonters’ personal information is secure and that they are protected from identity theft.” Johnson said representatives have already begun to work on legislation to address citizens’ concerns, and that several bills are expected to be introduced when the legislative session resumes in January. In the meantime, four public hearings have been scheduled for the state Commerce Committee. “We’ve heard from countless Vermonters and the message is clear: they want control over their personal information,” said Attorney General TJ Donovan. The first public hearing is set to take place at the Springfield Town Office on Thursday, Nov. 9 at 12:30 p.m. The town offices are located at 96 Main St. Later that day, at 5:30 p.m., a second hearing will take place at the Barton Village Office, 17 Village Square in Barton. The two remaining hearings will be held on Tuesday, Nov. 14 — the first at 12:30 p.m. at the Manchester Community Library, 138 Cemetery Ave., Manchester Center, and the second at the Department of Health Conference Room, 108 Cherry St. in Burlington at 6 p.m. The Attorney General’s office provided the following website updated regularly with consumer information: www.consumer.vermont.gov. Vermonters can also access their credit report for free at www.annualcreditreport.com
Pure grandstanding. Such a JOKE.
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