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

Who defines a "legitimate businesses"

[vinn01]

... allowed identity thieves posing as legitimate businesses ...

From ChoicePoint's perspective, they were legitimate businesses. They paid for the data, they didn't steal it.

From the goverment's perspective, they were legitimate businesses if they paid taxes on their "profits".

Now from the victims perspective, they were a bunch of crooks raiding their credit records and sucking as much out as they could.

Is every employer, landlord, and car dealer a legitimate business just because they actually have a better excuse to get their hand on the data? Some of those businesses are a bunch of crooks too.

The whole system needs better security, not just better control over who can get your info.

vb