Fergie's Tech Blog

South Korea Solves the Identity Theft Problem

Bruce Schneier writes (and I completely agree with him here) on his blog:

South Korea gets it:

The South Korean government is introducing legislation that will make it mandatory for financial institutions to compensate customers who have fallen victim to online fraud and identity theft.

The new laws will require financial firms in the country to compensate customers for virtually all financial losses resulting from online identity theft and account hacking, even if the banks are not directly responsible.

Of course, by itself this action doesn't solve identity theft. But in a vibrant capitalist economic market, this action is going to pave the way for technical security improvements that will effectively deal with identity theft.

The good news for the rest of us is that we can watch what happens now.

posted by Fergie @ 12/14/2005 07:22:00 AM