In what seems like an epidemic of confidential data being compromised, MasterCard recently announced that 40 million — yes a number with seen zeros as in 40,000,000 credit card files were put at risk when a computer at credit card processor Card Systems International was breached.

MasterCard said other personal data that might contribute to identity theft, like Social Security numbers and dates of birth, was not stored on its cards and therefore not at risk. And it said credit card holders would not be liable for any fraudulent charges to their accounts.

I believe that the government will come out with some very strict laws soon which will aim to reduce problems such as this from happening. It is unclear what can be done but I get the feeling the situation is coming to a boil. Recently a similar problem happened at CitiGroup, LexisNexis and ChoicePoint.

More on this story from the NY TIMES.