ChoicePoint ID Theft Victims' Day Has Come
The victims will be paid out of a $5 million fund established by ChoicePoint as part of its January settlement with the FTC. ChoicePoint also agreed to pay a $10 million fine for failing to adequately protect the consumer information in its databases.
The Georgia-based ChoicePoint is a credit report service used by more than 50,000 landlords and merchants to conduct background checks on potential tenants and customers. It also has several law enforcement and government agencies as clients.
In February 2005, ChoicePoint disclosed that an ID theft ring gained access to the company's vital credit information. The breach involved more than 160,000 records.
In a complaint brought against ChoicePoint, the FCC said the company did not have reasonable procedures in place to screen prospective clients, turning over consumer personal data to customers whose applications raised obvious red flags.
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comment: the fact that data theft consequences include compensation for the victim could means that database security will become a hot topic for data owners. (at last)
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