PCI [0] is an industry standard which is mandated in order to maintain good standing in the payments industry and HIPAA [1] is US legislation which governs the handling of patient health data.
The issue we face is that there is no equivalent for either of these in relation to handling of PII and identity data.
Why there're standards for cars, but no standards for computer systems? I think it's possible to create them. If there're standards, it's easy to define malpractice.
* Passwords should be stored only in salted and hashed form
* Code injection attacks shouldn't be possible
* Personal data should be stored in anonymized form with mapping between real and virtual id stored separately
* Only cryptographic algorithms from the approved list might be used (no MD5)
You can't claim negligence of following industry standard practices when there ARE no industry standard practices. The closest we have in the software field is the work done by NASA on creating legitimately safe code. But companies don't want to follow those sorts of guidelines because they make software development slow and expensive. Sure software development is the primary driver of their businesses existence no matter what industry they are in, but they feel entitled to it being cheap and fast.