Alabama league introduces data security legislation

The Alabama Credit Union League (ACUL) has introduced a bill in the state legislature aimed at protecting consumers' financial data.

The legislation, introduced by State Rep. Tammy Irons (D) and State Sen. Parker Griffith (D), contains three provisions:

1 - Entities that experience a data breach would be required to notify consumers;

2 - Sensitive consumer financial data, such as the content of a magnetic stripe on a plastic card, personal identification number or card validation code, cannot be retained; and

3 - Any entity that experiences a breach and holds prohibited data must reimburse the issuing financial institution for the cost of reissuing cards or taking steps to protect accounts.