Recent cyberattacks on payment systems at Target Corp. and other U.S. retailers show that U.S. laws designed to protect consumer data need updating, lawmakers said at the first of three congressional hearings on the matter.

Senate Banking Committee members yesterday called for requiring retailers to participate in a national data-breach notification system and granting wider authority for the Federal Trade Commission to investigate incidents. Senator Mark Kirk, an Illinois Republican, said he would introduce a bill to set a minimum 25-year sentence for violations of federal data-theft laws.

"This is a real problem that the FTC's enforcement authority in this area is so limited," Senator Elizabeth Warren, a Massachusetts Democrat, said of the agency's role in data-breach cases. "Data-security problems aren't going away on their own so Congress really needs to consider whether to strengthen the FTC's hand."

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