News - ChoicePoint

For showing little regard for the little people

If DuPont were to reveal it had “misplaced” several thousand tons of toxic waste, you’d expect more than an “oops,” wouldn’t you? If Raytheon Corp. announced it had accidentally handed a couple of warheads over to some guys in turbans, that’d be a big problem, right?

Same goes for ChoicePoint, which last week admitted it had sold personal information for 145,000 people across the country - names, addresses, credit reports and Social Security numbers - to identity thieves. About 2,800 of the victims are Georgians.

The Alpharetta-based data broker didn’t admit it right away. When the news broke Feb. 15, the company initially tried to say the breach affected only a few hundred Californians. That’s because California is the only state that requires potential victims to be notified; but for that law, ChoicePoint might have succeeded in covering up the fraud indefinitely, even though the company first learned of the problem in October.

Even with the advance notice, ChoicePoint CEO Derek Smith spent nearly a week dodging the press and refusing interviews, instead sending out PR flacks to explain how “sophisticated” and “extremely well organized” the thieves had been. As it turns out, ChoicePoint had sent reams of sensitive consumer info to guys who’d faxed them fake business licenses from Kinko’s. So much for safeguards.

When Smith finally spoke up, it was through a press release whining that “no one, including us, is immune from ... fraud.”

Sorry, Derek, but when you’re dealing with the legal and financial records of nearly every man, woman and child in America - as ChoicePoint makes its business to do - such self-pitying platitudes are not good enough.

Responsible handling of such records is every bit as important a public safety issue as is the proper disposal of hazardous waste. If it turns out that ChoicePoint’s gross negligence doesn’t violate current law, the laws are clearly inadequate. It’s encouraging that legislators in Georgia and around the country are already drafting laws that would help prevent - or at least provide reasonable notification of - a similar security breach.

If ever a company was asking to have the shit regulated out of it, it’s ChoicePoint.

To read more about ChoicePoint, see atlanta.creativeloafing.com/2003-12-04/cover_news.html.??






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