ChoicePoint Hit With Large Fine For Data Theft

Lam1969 writes "The U.S. Federal Trade Commission has fined ChoicePoint $10 million for a data breach that allowed identity thieves posing as legitimate businesses to steal social security numbers, credit reports, and other data from nearly 140,000 people. This is the largest fine ever levied by the FTC. ChoicePoint also has to set up a 'trust fund' for people victimized by identity thieves. From the article: 'As part of its agreement with the FTC, ChoicePoint will also have to submit to comprehensive security audits every two years for the next 20 years.'" BusinessWeek has some background information on this breach.

Comments

When you put...

[Avillia]

The information of millions of citizens, including employment, financial, contact, and other personal information all in the hands of a third party corporation who has to make next to nil security checks with the government, what could possibly go wrong?

Not enough

[voice_of_all_reason]

I was expecting something a little more Barad-Dur-ish. You know, heads of traitors impaled on the bridge as a warning to others.

Red Flags

[Billosaur]

In its decision, the FTC slammed ChoicePoint, saying that it did not have reasonable procedures in place to screen prospective subscribers and that it turned over sensitive personal information to subscribers whose applications raised obvious red flags.

Hello, ChoicePoint? My name is Al... Al Kayduh... yes, I'm looking for the personal information for some decadent American spawns of... I mean fine, upstanding Americans...