AOH :: ISN-3037.HTM

FTC hasn't paid victims of breach at ChoicePoint

FTC hasn't paid victims of breach at ChoicePoint
FTC hasn't paid victims of breach at ChoicePoint 

By Associated Press
September 21, 2006

ATLANTA -- Nearly eight months after regulators trumpeted a settlement 
with ChoicePoint Inc. over a data breach, the government has not paid 
any money to victims from a $5 million fund that was to be set up as 
part of the agreement.

The Federal Trade Commission also has not yet implemented procedures for 
how the 800 fraud victims it has identified so far can be compensated 
from the fund, nor has it hired anyone to administer it , said FTC 
spokeswoman Claudia Bourne Farrell.

``That's under review," Farrell said Tuesday. Responding to an open 
records request by the Associated Press, Farrell said the commission is 
trying to develop a plan to distribute the money efficiently.

Jessica Rich, assistant director of the FTC's division of privacy and 
identity theft, said in a statement yesterday that ``law enforcement is 
still identifying victims, and we want to make sure we have the right 

The disclosure about the money not yet being distributed comes as the 
president's identity theft task force adopted recommendations on 
addressing the problem of identity theft. The interim recommendations, 
released Tuesday and highlighted in an FTC news release, included 
extending restitution for victims of identity theft and helping victims 
get easier access to police reports about the misuse of their personal 

Representative Edward J. Markey, Democrat of Massachusetts and a member 
of the House Telecommunications and Internet Subcommittee who has 
authored legislation to protect consumers' personal information, said 
the FTC isn't moving fast enough.

Markey said the ``victims should immediately receive the compensation 
they urgently need to protect themselves from exploitation by identity 
thieves." He added, ``Further delay is unacceptable."

ChoicePoint spokesman Matt Furman said yesterday, ``Our goal has always 
been to respond to consumers, in whatever state they may live."  He 
added, ``We have full faith that the FTC is working hard to come up with 
a process to ensure that the money we contributed to help consumers is 
wisely spent for the benefit of anyone actually affected."

ChoicePoint, which collects, sells access to and analyzes information on 
consumers, agreed Jan. 26 to pay the FTC $15 million to settle claims 
that its procedures for security and record handling violated consumers' 
privacy rights when thieves infiltrated the company's massive database.

Farrell said she assumes the 800 victims the agency identified would be 
eligible for payments .

The settlement also permitted the FTC to use money from the fund to pay 
any expenses from administering the fund. Farrell said no expenses have 
been paid.

Copyright 2006 Globe Newspaper Company.

Visit the InfoSec News store! 

Site design & layout copyright © 1986-2015 CodeGods