News
News
1/27/2006
05:15 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

ChoicePoint's Tab Adds Up

CEO Smith

CEO Smith

Photo by Paul J. Richards/AFP
Fifteen million dollars, plus regular data-security audits and mandated changes in business practices. That's what ChoicePoint will pay to settle charges it violated consumer privacy rights when it unwittingly sold more than 163,000 customer records to fraudsters. ChoicePoint ushered in our current state of data insecurity, as one of the first companies stung in a big way by having to reveal its mistakes under data-disclosure laws.

The $10 million civil-penalty portion of the fine is the largest single fine in Federal Trade Commission history. In comparison, the state of California last year slapped a division of Kaiser Permanente with a $200,000 penalty for a breach that affected 150 customers, as states stepped up enforcement, too.

State disclosure laws brought these breaches to light, yet they continue. Last week, Ameriprise Financial said unencrypted data, including Social Security numbers of 226,000 customers and employees, was stolen from a laptop. The worker who downloaded the data was fired.

ChoicePoint CEO Derek Smith, in case you were wondering, remains in his job.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.