What's the best way to a) structure the credit system so this doesn't happen and b) incentives to ensure compliance with that structure? I suspect most people

What's the best way to a) structure the credit system so this doesn't happen and b) incentives to ensure compliance with that structure? I suspect most people here find the CEO's explanation lacking (and most people who read the NYT, hence the headline): it's no use venting here. I'm more curious about how to move forward, but I'm not a security expert. Let's assume credit bureaus are here to stay: we, as a society, have decided to lower the price of loans by reducing risk for lenders via easily available credit histories (with all the benefits and drawbacks). How have some companies and agencies have managed to keep data secure, and how can we encourage other companies and agencies to do so, via carrot and/or stick?