ChoicePoint to pay $275,000 in latest data breach

ChoicePoint to pay $275,000 in latest data breach
ChoicePoint to pay $275,000 in latest data breach 

By Elinor Mills
InSecurity Complex
CNet News
October 20, 2009

ChoicePoint, one of the nation's largest data brokers, has been fined 
$275,000 by the U.S. Federal Trade Commission for a data breach that 
exposed personal information of 13,750 people last year.

In April 2008, ChoicePoint turned off a key electronic security tool 
that it used to monitor access to one of its databases and failed to 
notice the problem for four months, according to an FTC statement.

During that period, unauthorized searches were conducted for 30 days on 
a ChoicePoint database that contained Social Security numbers and other 
sensitive information, the FTC said.

The FTC alleged that ChoicePoint's conduct violated a 2006 court order 
requiring the company to institute a comprehensive information security 
program following a 2005 breach that compromised the personal 
information of more than 163,000 people and resulted in at least 800 
cases of identity fraud. The company was ordered to pay $10 million in 
civil penalties and $5 million to consumers in that case.


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