Ramifications of Database ID Theft Scam Intensify

Over the past two days, significant primary and secondary information associated with the ChoicePoint ID theft scam has become available. Please see the following sources, which appear in chronological order:

  • SEC probing ChoicePoint stock sales
  • Rep. Markey Press Conference Statement Introducing the “Information Protection and Security Act” (S. 500 and H.R. 1080): “In the emerging surveillance society of the 21st Century, the data mining and information brokerage firms seem to have also come to belief that there is no such thing as a private self. These companies are collecting and selling a vast array of personal information about the American public…Unchecked, these companies take advantage of the most valuable possessions that Americans have: their personal identities.”
  • Execs sold shares before ID thefts made public
  • ChoicePoint 8-K Filing with the SEC: “We are announcing today that we are discontinuing the sale of information products that contain sensitive consumer data, including social security numbers, except where there is either a specific consumer driven transaction or benefit or where the products support federal, state or local government and law enforcement purposes.” [Reuters reported that the company will limit customer access to this data within 90 days.]
  • ChoicePoint to Exit Non-FCRA Consumer Sensitive Data Markets; Shift BusinessFocus to Areas Directly Benefiting Society and Consumers. According to CEO Derek Smith, “These changes are a direct result of the recent fraud activity, our review over the past few weeks of our experience and products, and the response of consumers who have made it clear to us that they do not approve of sensitive personal data being used without a direct benefit to them…”
  • For reference, see the Fair Credit Reporting Act (FCRA)
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    Posted in: Congress, Legal Research, Legislation, Privacy
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