ChoicePoint Fined for Security Breach

ChoicePoint Inc. will pay federal regulators $275,000 for a data breach in 2008 that compromised the personal information of 13,750 people and put them at risk of identify theft, the Federal Trade Commission reported.

In April 2008, ChoicePoint turned off a key electronic security tool used to monitor access to one of its databases, and for four months failed to detect that the security tool was off, according to the FTC. During that period, an unknown person conducted unauthorized searches of a ChoicePoint database containing sensitive consumer information, including Social Security numbers. The searches continued for 30 days.

The FTC’s prior action against ChoicePoint involved a data breach in 2005, which compromised the personal information of more than 163,000 consumers and resulted in at least 800 cases of identity theft. The settlement and resulting 2006 court order in that case required the company to pay $10 million in civil penalties and $5 million in consumer redress.