Choice Point can no longer trust collection agencies.
ChoicePoint toughens data security
Report: Company will now electronically mask sensitive personal info in aftermath of data breach.
June 24, 2005: 9:26 AM EDT
NEW YORK (CNN/Money) - ChoicePoint is changing the way it shares sensitive electronic data in an effort to avoid incidents of security breach that may lead to identity theft, according to a report published Friday.
The Wall Street Journal reported that ChoicePoint (Research), the national provider of identification and credential verification services, will electronically mask sensitive information such as Social Security numbers in its reports and background checks provided to companies on new employees.
The company is also taking steps to severely reduce its business in providing data to private investigators, collection agencies and some small financial concerns, the newspaper said.
Among them, the company said it will restrict the type of information provided to certain small business clients , including private investigators and collection agencies, the newspaper said.
Those customers and "non-bank" financial institutions, such as check-cashing concerns, will no longer have access to reports containing an individual's full Social Security number and similar sensitive information, the report said.
The Journal said the moves come in the wake of thehigh-profile breach at ChoicePoint earlier this year in which criminals posed as legitimate small businesses to illegally obtain data.
The breach has heightened concerns about identity theft -- in which an individual's personal information is used to fraudulently open credit-card accounts or apply for loans -- and helped spur congressional hearings into whether further laws are needed to protect sensitive personal data, the report said.
Report: Company will now electronically mask sensitive personal info in aftermath of data breach.
June 24, 2005: 9:26 AM EDT
NEW YORK (CNN/Money) - ChoicePoint is changing the way it shares sensitive electronic data in an effort to avoid incidents of security breach that may lead to identity theft, according to a report published Friday.
The Wall Street Journal reported that ChoicePoint (Research), the national provider of identification and credential verification services, will electronically mask sensitive information such as Social Security numbers in its reports and background checks provided to companies on new employees.
The company is also taking steps to severely reduce its business in providing data to private investigators, collection agencies and some small financial concerns, the newspaper said.
Among them, the company said it will restrict the type of information provided to certain small business clients , including private investigators and collection agencies, the newspaper said.
Those customers and "non-bank" financial institutions, such as check-cashing concerns, will no longer have access to reports containing an individual's full Social Security number and similar sensitive information, the report said.
The Journal said the moves come in the wake of thehigh-profile breach at ChoicePoint earlier this year in which criminals posed as legitimate small businesses to illegally obtain data.
The breach has heightened concerns about identity theft -- in which an individual's personal information is used to fraudulently open credit-card accounts or apply for loans -- and helped spur congressional hearings into whether further laws are needed to protect sensitive personal data, the report said.
posted by Creditwrench at 1:22 PM
