New California law forces companies to disclose hacking

Source: Silicon Valley

California consumers will learn next month whether their favorite shopping sites are steeled against computer fraud -- or haunts of hackers and identity thieves.

Starting July 1, companies must warn California customers of security holes in their corporate computer networks. When a retailer discovers its credit card numbers have been stolen, it must e-mail customers, essentially saying, ``We've been hacked, and the hacker may have your credit card number.''

Local politicians call the regulation the first of its kind in the United States, and it could become the model for a nationwide law. U.S. Sen. Dianne Feinstein plans to introduce similar legislation within a month.

``Corporate and government databases are increasingly becoming targets of identity thieves seeking Social Security numbers and other sensitive personal data,'' the California Democrat said in an e-mail. ``Under current law, all too often people are unaware that an identity thief has gained this information and may be using it to run up credit card bills or use it to manufacture a new identity.''