Choice Point shows the threat of identity fraud
The precarious security companies surrounding the aggregate American consumers’ personal information and credit, fuelling fears of identity theft, and today one of the largest companies Choice Point Inc., is paying the price a violation of its security. The Federal Trade Commission announced that Choice Point would pay $ 15 million for the settlement occupied it violates the privacy rights of consumers and federal laws.If Choice Point announced last year it had more than 30000 Californians that their personal and financial information have been replaced by thieves had access to the database of the company, losging alarm consumers concerned . But many were favourable to privacy is far from being shocked.
Choice Point is based on Georgia data collection company, compile and personal credit information on individuals and sells access to its database public and businesses. According to the law of California, data collection companies such as Choice Point sharing of state residents, if violations of the safety of their personal data. In October 2004, the company discovered that identity thieves masquerading as legitimate businesses have access to social security numbers, credit reports and personal information on thousands of Californians.
The company has more than 35,000 letters announced last February, Choice Point and sent letters to later, another 110000 consumers were affected, including some outside California.
“We take it very seriously. We try not to be afraid,” Choice Point James Lee said the spokesman last year after the notification letters were first sent.
The records staff 145000 potential consumers have been threatened, according to an agreement announced today by the FTC. The village is part of the $ 10 million and a surcharge of $ 5 million to pay compensation to consumers.
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