Identity theft damages humans far more than corporations, which would put it pretty low on the list of governmental priorities. So Leahy frames the problem in terms they can't ignore...the (I need a font called "Sarcastic" here) deep concern over national security.
ID Thieves Tap Files at 2nd Big Data Firm
LexisNexis discloses that information on more than 30,000 Americans was breached. Congress plans to begin hearings today on such problems.
By David Colker
Times Staff Writer
March 10, 2005
Identity thieves have struck again, using stolen passwords to tap personal data on more than 30,000 Americans kept by information broker LexisNexis, the company said Wednesday.
The disclosure came at a bad time for an industry suddenly in the glare of unfavorable publicity. Although apparently unrelated to a larger security breach at ChoicePoint Inc. made public last month, the LexisNexis case heightened concern about businesses that keep files on consumers and prompted calls for tighter regulation.
"If criminals can breach these security arrangements, there is danger that terrorists may also be able to," Sen. Patrick J. Leahy (D-Vt.) said in a statement Wednesday.
At a Senate Banking Committee hearing today on identity theft, Leahy plans to ask for an audit of security arrangements the federal government has with databases run by ChoicePoint and LexisNexis.
The House Energy and Commerce subcommittee on commerce, trade and consumer protection also is joining the fray, setting hearings for next week on the ChoicePoint infiltration. Several members of Congress have said they intend to introduce legislation calling for closer monitoring of information brokers by the Federal Trade Commission.
ChoicePoint and LexisNexis compete in the booming business of providing personal data on millions of Americans to merchants, employers and government agencies.
Their services also are valuable to identity thieves who, posing as legitimate customers, use them to acquire Social Security numbers and other personal information to open fraudulent credit card accounts.
