ChoicePoint Settles Data Security Case

Choicepoint, the poster child of security breaches, reportedly has settled with the Attorneys General of 44 states. The settlement is nominal cash-wise ($500,000) and includes requirements for tougher security measures:

ChoicePoint Settles Data Security Case - New York Times

June 1, 2007

ChoicePoint Settles Data Security Case

By REUTERS

ChoicePoint has settled with 44 states over a data breach that potentially gave criminals access to personal information from more than 145,000 consumers.

The company agreed to adopt stronger security measures and pay $500,000 to the states, Richard Blumenthal, the attorney general of Connecticut, said yesterday.

ChoicePoint, which sells information about consumers to employers, marketers and others, said in 2005 that criminals posing as legitimate businesses had gained access to consumer data, including Social Security numbers and credit histories.

The company, based in Alpharetta, Ga., was one of several to announce large-scale security breaches in 2005, raising identity theft as an issue for many legislators and regulators.

ChoicePoint characterized the settlement as “fair and reasonable.”

In January 2006, ChoicePoint settled a case with the Federal Trade Commission involving the security breach.