Comments on: FTC imposes $10M fine against ChoicePoint for data breach

FTC imposes $10M fine against ChoicePoint for data breach

mk1gti — Thu, 26 Jan 2006 14:41:45 -0800

FTC imposes $10M fine against ChoicePoint for data breach The U.S. Federal Trade Commission has fined ChoicePoint $10 million for a data breach that allowed identity thieves posing as legitimate businesses to steal social security numbers, credit reports, and other data from nearly 140,000 people. This is the largest fine ever levied by the FTC. ChoicePoint also has to set up a 'trust fund' for people victimized by identity thieves. From the article: 'As part of its agreement with the FTC, ChoicePoint will also have to submit to comprehensive security audits every two years for the next 20 years.'" BusinessWeek has additional info. Perhaps there might be hope for individual privacy after all. Let's all keep our fingers crossed.

By: malaprohibita

malaprohibita — Thu, 26 Jan 2006 14:47:37 -0800

fingers croxxed

By: uni verse

uni verse — Thu, 26 Jan 2006 14:52:09 -0800

Good, money is the only thing CP listens to.

By: phredhead

phredhead — Thu, 26 Jan 2006 14:53:05 -0800

Hope they have to pay all at once, if the FTC gives them a payment plan, that would be a joke.

By: redteam

redteam — Thu, 26 Jan 2006 14:54:35 -0800

So where will this fine money go? What will it be used for?

By: public

public — Thu, 26 Jan 2006 14:56:47 -0800

This is the largest fine ever levied by the FTC Toothless.

By: elpapacito

elpapacito — Thu, 26 Jan 2006 14:58:43 -0800

ChoicePoint will also have to submit to comprehensive security audits every two years for the next 20 years. What ? I guess it will go bankrupt much sooner then that. I supposed it's a limited liability company ?

By: public

public — Thu, 26 Jan 2006 15:03:22 -0800

$10,000,000 = ~10% of ChoicePoints total equity right now. They don't appear to have much cash lying around though. If their core business doesn't suffer too badly and their management can deal with the situation reasonably then they will probably survive. $10,000,000 is a big deal, but it isn't terminal.

By: ericb

ericb — Thu, 26 Jan 2006 15:04:49 -0800

In addition to the $10 million fine -- "ChoicePoint has been asked to set up a $5 million trust fund for individuals who might have become victims of identity theft as a result of the breach."

By: drstein

drstein — Thu, 26 Jan 2006 15:05:58 -0800

What the FTC should do is allow US citizens to show up at their door and walk out the door with every single piece of data ChoicePoint has on them. I feel that ChoicePoint, a private corporation, has absolutely no right to harbor any data about me whatsoever. Sadly it seems that there's diddly squat that we can do about it. :-|

By: public

public — Thu, 26 Jan 2006 15:10:12 -0800

What the FTC should do is allow US citizens to show up at their door and walk out the door with every single piece of data ChoicePoint has on them. Woah, what you don't have an equivelent of the UK's Data Protection Act in the USA?

By: mr_roboto

mr_roboto — Thu, 26 Jan 2006 15:11:02 -0800

Yeah. There are still lawsuits to be sorted out, right?

By: mk1gti

mk1gti — Thu, 26 Jan 2006 15:12:02 -0800

I go for total liquidation of all assets. "I'll have that desk over there, that computer monitor over there, oh I need a printer, an office chair, that painting on the wall, the credenza, a lamp, your secretary. . .

By: fixedgear

fixedgear — Thu, 26 Jan 2006 15:15:54 -0800

Good luck collecting, FTC. Chances that Choice Point will appeal? What are the odds that all or part of this will ever be paid?

By: public

public — Thu, 26 Jan 2006 15:17:12 -0800

Some info on ChoicePoints financial situation prior to the fine On-going legal expenses related to the fraudulent data access are currently estimated at $4 to $6 million for 2006, exclusive of any potential settlements, with the majority of these expenses incurred during the first two quarters. The FTC should really of totally beat them senseless over this, but I guess giving out massive fines to companies is a bit of a disincentive to big businesses to operate in America. America is to morality as Monaco is to tax.

By: octothorpe

octothorpe — Thu, 26 Jan 2006 15:40:36 -0800

Woah, what you don't have an equivalent of the UK's Data Protection Act in the USA? Nope. Nothing of the sort.

By: elpapacito

elpapacito — Thu, 26 Jan 2006 15:42:39 -0800

Thanks for the link, public. One billion dollar total revenue in 2005 is nothing to sneeze at for a company that sells information ..it's clearly an interesting business even not considering the net profit margin. Notice how the damage that may/may not be inflicted to the people whose data was stolen from Choicepoint may easily surpass a mere USD 5 million trust fund, which is the same as USD 35 for each person ! Also considering litigation costs (which I believe can be written off as exercise cost ? ) their lame security costed them maybe USD 20 Million ? It's a 'success' story no head will roll. Now thinking again at their revenue..suddendly my personal info has more value to me.

By: Oyéah

Oyéah — Thu, 26 Jan 2006 16:07:56 -0800

Why, oh why, is it legal for choicepoint to what they do, at all? I think that they are crooks, and the government that buys their info is crooked, for buying what they can't legally collect, and the "crooks" that got info, are just following suit.

By: amberglow

amberglow — Thu, 26 Jan 2006 16:34:00 -0800

10 million is nothing--it should have been 100 million.

By: aaronetc

aaronetc — Thu, 26 Jan 2006 17:22:37 -0800

redteam: I assume this money will ultimately be funneled back to ChoicePoint in the form of voter roll "scrubbing" contracts. Granted, this is a federal agency fining them and the states handle their own rolls but, honestly, the machine is the machine.

By: kurumi

kurumi — Thu, 26 Jan 2006 17:51:12 -0800

A few years ago, ChoicePoint acquired a company called Database Technologies (DBT Online). DBT's most notable contract, involved, of all things, the 2000 presidential election in Florida. Specifically, vote suppression. (Some background at wikipedia) Anyway, ChoicePoint's breach happened when "a small number of very well-organized criminals posed as legitimate companies to gain access to personal information about consumers." Y'know, I don't even want "legitimate" companies using that information. Too bad ChoicePoint is going to continue doing this without our consent, at our cost, and with no compensation to us. How about a corporate death penalty? Liquidate CP and use the funds to prosecute identity fraud and compensate its victims.

By: NewBornHippy

NewBornHippy — Thu, 26 Jan 2006 19:05:58 -0800

And that's their 1.4¢.

By: Optimus Chyme

Optimus Chyme — Fri, 27 Jan 2006 03:51:41 -0800

Liquidate CP and use the funds to prosecute identity fraud and compensate its victims. posted by kurumi at 5:51 PM PST on January 26 We only execute retarded people, not retarded companies.