White House warns Congress to pass cyber security laws

The Obama administration pressed the US Congress this week to pass a proper legislation to protect consumers’ data and safeguard the nation's financial system and electric power grid from potentially devastating cyber-attacks.

Over the past year Congress rejected several cybersecurity bills while big companies such as Nasdaq OMX Group and Sony Corp suffered high-profile hacker attacks.

"The cybersecurity vulnerabilities in our government and critical infrastructure are a risk to national security, public safety and economic prosperity," the White House said in a statement.

Many observers are doubtful about that the White House pressure will win support for stricter cybersecurity laws, especially among Republicans who control the House of Representatives.

Besides, the proposed legislation would require companies to unveil to their customers that they have ever experienced cyber attacks and data breaches.

It also adds cyber crimes to RICO, the Racketeering Influenced and Corrupt Organizations Act, since organized crime is behind much of the theft of credit card numbers and passwords.

The administration also wants to force companies critical to U.S. infrastructure -- such as electric companies and big financial firms -- to develop their own plans to address security weaknesses.

The Department of Homeland Security (DHS) would be allowed to weigh in on whether particular plans are adequate.