President Obama Signs Executive Order On Identity Theft

October 20th, 2014

Data security and identity theft are prominent topics for any industry these days. For collection agencies, providing data security is one of the important things we can do to provide peace of mind for our clients. It is on that front that some significant news came on a national level this week.

President Obama signed an executive order regarding identity theft. Patrick Lunsford of InsideArm describes the measure:

"President Obama Friday signed an executive order that calls for increased credit card protection measures for some federal benefits and expense cards distributed by the government. The President also formally endorsed the chip-and-PIN payment system for U.S. cards, a move opposed by many banking and commerce groups.

"The President made the announcement in a speech given at the headquarters of the CFPB in Washington. 'Identity theft is now America’s fastest-growing crime,' the President said. 'You should be able to buy the things that you need without risking your identity, your credit score or your savings.'"

This move participates in the momentum towards 'Chip-and-Pin' systems, which are used in European countries and seen as a safer payment method for consumers. There are still many steps in that process and we have a long way to go, but this measures signals an important focus on data security in the big picture.

Different industries offer different levels of protection. Oftentimes these levels of security come in the forms of certifications. As an example, creditors should always ask themselves what their collection agency partners are doing to secure their data. Do they meet the top standards in the industry to meet the challenges of the moment?

That is the question we all must answer in our respective positions and industries. President Obama pushed these efforts forward on a government level by signing this executive order.

Link: President Signs Executive Order on Identity Theft; Endorses Chip and PIN for Cards (InsideArm)