UPDATED 10:20 EDT / APRIL 08 2011

Epsilon Data Breach Gets Washington’s Attention

After third-party marketing firm Epsilon suffered a massive security breach, the email addresses and names of millions of its clients’ customers have been compromised. The former include Chase Bank, Best Buy, TiVo, Disney, Kroger and more, and now, this still-blurry incident is getting some attention from Washington.

Minnesota Democrat Sen. Al Franken, who chairs the e subcommittee on privacy says he wants to explore the situation, which may even lead to potential hearings in the future. Sen. Richard Blumenthal, a Democrat from Connecticut, also expressed his concerns in a letter to Attorney General Eric Holder. Blumenthal asked Holder to investigate Epsilon for “possible civil and criminal liability,” but he and Franken are certainly not the only one looking into the Epsilon breach.

“There’s also talk of hearings on the matter in the House. On top of that, state attorney generals in Rhode Island, Iowa, Nevada and Oregon have started warning consumers in their state about the dangers of clicking links in suspicious emails that may emerge in the coming days.”

Washington may be worried about the Epsilon incident and the millions of compromised customers, but investors don’t seem to be too concerned about it. Shares of Alliance Data Systems, Epsilon’s parent company, actually rose more than one percent; the business unit accounts for about 22 percent of Alliance Data Systems’ revenues.

The Epsilon breach came shortly after the RSA hack, a division of yet another major player in IT – EMC. RSA was subject to an Advanced Persistent Threat also known as APT, which obtained data related to RSA’s SecurID security tool rather than the unit’s corporate and governmental clients. This data may be used for a wider scale attack in the future.

The RSA hack is a very notable but indeed, but when it comes to customer privacy breaches, Facebook is always the first name to come up. Last year news broke that several Facebook apps are sending user IDs to third parties, such as advertising networks, with the knowledge of the users themselves. This resulted in numerous security and privacy updates releases over the course of just a few months, although Facebook still continues to raise some eyebrows concerning certain privacy issues.


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