Recently, the FTC announced a settlement in its complaint against the data broker ChoicePoint for a data security breach that resulted in over 160,000 people’s personal information being sold to identity thieves. According to the Washington Post:
Data broker ChoicePoint Inc. yesterday agreed to pay a $10 million federal fine over security breaches that exposed more than 160,000 people to possible identity theft. Privacy experts praised the settlement as a warning to companies to get more serious about protecting sensitive information.
The Alpharetta, Ga.-based company, one of the nation’s largest buyers and sellers of personal information such as Social Security numbers, birth dates and addresses, also agreed to pay $5 million into a fund to compensate people who suffered as a result of the breaches.
The FTC complaint is here. There are some important issues worth discussing in connection with the news of the settlement.