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U.s. Firms Lax With Data Security, Illinois Official Tells Congress


Ron Burgundy
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Attorney General for the State of Illinois Madigan testifies before House Energy and Commerce Subcommittee on recent Target and Neiman Marcus data breaches in WashingtonBy Alina Selyukh WASHINGTON (Reuters) - U.S. companies that have fallen prey to hackers, exposing the private information of millions of customers, have often failed to take basic security precautions to protect client data, Illinois Attorney General Lisa Madigan told a House of Representatives committee hearing on Wednesday. Madigan said previous investigations, conducted before the recent spate of high-profile breaches, had turned up repeated instances where companies allowed their systems to retain unencrypted data, failed to install software patches for known vulnerabilities and kept information longer than necessary. Madigan said her office and that of Connecticut Attorney General George Jepsen are now leading a multistate investigation into recent data breaches that affected millions of customers of U.S. retailers Target Corp, Neiman Marcus Group LLC, and Michaels Stores Inc. "During prior breach investigations, we have found instances when companies failed to take basic steps to protect consumer data," Madigan told the House Energy and Commerce Committee panel.




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