That’s a huge loophole that could be used in almost every incidence of stolen data, said Dan Clements, CEO of CardCops.com, a company that tracks the sale of stolen credit cards on the Web. Every law enforcement agency that receives a crime report is going to consider the case “under investigation,” he said.
“Only about 10 percent of the merchants do the right thing and notify customers when there is a compromise,” Clements said. “Most want to sweep the hack under the rug. Their motivation is clear; they don’t want to lose their customers’ trust.”
From “Suffering in silence with data leaks,” by Greg Sandoval. That’s a stunning assessment of how bad the problems are. No wonder businesses are lobbying like mad to be allowed to keep customers in the dark.