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Aetna Loses Laptop Containing Customer Data

By Martin H. Bosworth
ConsumerAffairs.com

May 1, 2006

• GAO: Government Can Do More to Protect Personal Data • US Search Agrees to Stop Selling Private Credit Data • TSA Site Left Passenger Data Exposed To ID Theft • Connecticut Governor Wants 'Opt Out' For Online Directories • Verizon Gave Customer Data To Government Without Court Orders • House Democrats Probe Warrantless Surveillance --- • More Privacy News ...

An employee of health insurance giant Aetna lost a laptop containing data on 38,000 customers, the company said.

The information included names, addresses, and Social Security numbers, but no financial information. The individuals were employees of companies who bought group health coverage from Aetna. The companies asked not to be identified.

Aetna spokesperson Cynthia Michener declined to verify where the theft took place, or if any of the information had been used.

In a subsequent statement, Aetna CEO Ronald Michener claimed the laptop had been secured with "strong password protection," and that the employee responsible "did not follow corporate policies."

"We have offered to pay for credit monitoring services for our affected members to help prevent any potential misuse of the information, and we are contacting each affected individual directly with information on how to access this service," Michener said.

The Aetna CEO also claimed that the company would be augmenting its data security structure to ensure all their employees followed proper procedure in the future.

Michener also said that Aetna was contacting all affected individuals, and would be offering them free credit monitoring for an unspecified period of time, to ensure they were protected from possible fraud or identity theft.

The theft or loss of laptops has been the latest trend in data breaches, with over 500,000 individuals potentially affected as a result of laptops being stolen or misplaced in the last six months. Companies affected have included Hewlett-Packard, Verizon, Ameriprise, and Ford.

The common thread in virtually all of these incidents is an employee or employees downloading confidential data onto laptops, and either leaving them physically vulnerable or failing to encrypt them.

Stealing laptops from vehicles in order to resell them has often led to customers' information being exposed.

Companies typically offer free credit monitoring to employees or consumers affected by data breaches, but many affected individuals often fail to utilize the service. Some don't follow the procedures necessary to sign up for it, while others are suspicious of providing more personal information to companies that have already jeopardized their customers' financial privacy.

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