Ohio Attorney Pleased That Choicepoint Is Agreeing To Make Changes To Its Business Practices To Better Protect Ohioans

May 31, 2007 -- Columbus – Ohio Attorney General Marc Dann, and attorneys general of 43 other states announced a settlement with ChoicePoint Inc. to resolve allegations that the company failed to adequately maintain the privacy and security of consumers’ personally identifiable information that was in its control.

ChoicePoint has agreed to make significant, ongoing changes in the way the company credentials new business customers that want access to its database of personally identifiable information. For the first time, a data broker has agreed to safeguard publicly available information using the same credentialing methods it uses to safeguard financial information that is protected by law. Certain sensitive publicly available information, including Social Security numbers, will now receive greater protection. Also as part of this settlement, ChoicePoint will pay $500,000 to the states.

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“ChoicePoint was an eye-opener for Ohio and was the catalyst for passing a new law that will require any state agency or business, that has experienced a database breach, to notify anyone whose personal information could be used for identity theft or fraud due to the security breach,” Attorney General Dann said. “I hope other businesses take note of the type of changes needed to secure information in this day and age of technology; and enact such changes within their own business practices so that consumers can feel secure about doing business in Ohio.”

ChoicePoint is a provider of identification and credential verification services to businesses, government and non-profit organizations. ChoicePoint, among other things, collects, maintains, and distributes consumers’ personally identifiable information. In February 2005, ChoicePoint announced that criminals posing as legitimate businesses gained access to consumers’ personally identifiable information. In the wake of these crimes, ChoicePoint, using the California breach notification law as a guide, mailed more than 145,000 notices to consumers across the country whose information may have been viewed or acquired by the criminals.

In January 2006, ChoicePoint settled a case with the Federal Trade Commission and paid $5 million into a pool to be used for consumer restitution. The FTC settlement requires ChoicePoint to improve its process for accepting clients that obtain information from credit reports. Today’s settlement goes beyond the FTC settlement and requires ChoicePoint to improve its credentialing process for clients that obtain Social Security numbers and other forms of personally sensitive information.

Consumers who suffered out of pocket expenses relating to identity theft that resulted from the ChoicePoint breach may obtain reimbursements under the FTC Order. The deadline to submit a claim form to the FTC is June 22, 2007. If consumers meet the eligibility requirements, they can complete the form and submit it for consideration. More information is available at: http://www.ftc.gov/bcp/conline/cases/choicepoint/index.shtm.

Examples of expenses for which consumers may be reimbursed:

* Unauthorized charges on existing accounts NOT covered by bank or credit card company
* Money paid on new accounts opened in consumer’s name
* Money paid to a debt collector on new accounts opened in consumer’s name
* Cost of ordering new checks
* Cost to file or receive copy of police report
* Notary fees
* Costs associated with correcting unauthorized charges and/or disputing incorrect information – telephone calls; mail, fax, photocopy charges; hourly fees for internet access; travel expenses.

Joining Ohio in today’s settlement are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin and the District of Columbia.

Source: Ohio Attorney General