Friday, July 22, 2005

Choicepoint pays the price

#128 The costs associated with this databrokers' security breach just keep mounting. ChoicePoint revealed in February that scam artists had gotten access to personal data on 145,000 Americans, resulting in at least 750 cases of identity theft. The scandal has prompted calls for new legislation to protect consumers' privacy rights.

Direct financial costs were $11.4M made up of $2M in communications costs to individuals whose data had been compromised and $9.4M for legal and proffesional fees.
Also, ChoicePoint overhauled its business to prevent further breaches. These changes are expected to cost between $15 million and $20 million during 2005.
Ouch....
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