Private Information Stolen from Nationwide Consumer Database

February 16, 2005
Criminals broke into a database that contains information on virtually every U.S. citizen, exposing as many as 100,000 consumers to identity theft and other crimes. The thefts occurred last October but are just being admitted by the company.

ChoicePoint • Lexis-Nexis Parent To Buy ChoicePoint • ChoicePoint Settles Data Breach Lawsuit • More ChoicePoint Identity Theft Victims Identified • ChoicePoint Settles With Attorneys General Over Data Breach • FTC Finally Sets Up Redress For ChoicePoint Victims • ChoicePoint Names a "Consumer Advocate" • FTC Fails To Pay Victims Of ChoicePoint Data Breach • ChoicePoint Gets a Makeover • Data Blunders Cost ChoicePoint $15 Million • Guilty Plea in ChoicePoint Data Theft • ChoicePoint Finds More Cases Of Illegal Data Access • ChoicePoint Responds • PATRIOT Act Further Empowers ChoicePoint • Previous Data Thefts Went Unreported • Consumers Will Be Able to See Their ChoicePoint Records, Company Says • Nigerian Sentenced to Prison in ChoicePoint Theft • State Tally of ChoicePoint Victims • ChoicePoint Breach Worse Than First Reported • Is National Security Compromised by ID Theft? • States Demand ChoicePoint Notify ID Theft Victims • Private Information Stolen from Nationwide Consumer Database

The database is operated by Georgia-based ChoicePoint, which has mailed letters to at least 35,000 Californians who have potentially been affected. The letters say that consumers' personal information, including bank account, credit card and Social Security numbers may have been accessed by unauthorized individuals.

California is the only state that requires companies such as ChoicePoint to notify consumers in writing when their private information is stolen. Thus, there's no way for Americans in the other 49 states to know if they're potentially affected.

The company initially said that only Californians were affected but has now conceded that up to 100,000 records may have been compromised.

In its letter to 35,000 Californians, the company recommended they their credit reports for unauthorized activity and any sign of identity theft.

ChoicePoint stores an estimated 19 billion public records on American residents, including names, addresses, Social Security numbers and credit reports. Insurance companies, government agencies, law enforcement and other customers also use the service for background checks.

ClearPoint sells its stored information to the US government and private business - landlords and credit companies are among those who use the reports to make risk assessments on potential clients.

The hackers apparently gained access to the records by making bogus applications to set up more than 50 ChoicePoint accounts, which they then used to trawl the database.

he scam came to light when a ChoicePoint employee noticed a suspicious application to open a customer account. Investigators then discovered 50 active bogus accounts belonging to non-existent debt collection and insurance agencies, as well as other fronts.

The Washington-based consumer privacy group, Electronic Privacy Information Center, was quick to seize on the security breach. It has consistently tangled with ChoicePoint over security and privacy matter in the past. Earlier this month EPIC asked the Federal Trade Commission to begin an investigation of ChoicePoint for its compliance with federal privacy laws.

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