ChoicePoint was supposed to take steps to protect consumer data. But the FTC alleged that in April 2008 the company switched off an internal electronic monitoring system designed to watch customer accounts for signs of unauthorized or suspicious activity. According to the FTC, that safety system remained inactive for four months, during which time unauthorized individuals used stolen credentials to look up personal information on 13,750 people in one of ChoicePoint’s consumer databases.
In a written statement, ChoicePoint blamed the incident on a government customer that failed to properly safeguard one of its user IDs needed to access ChoicePoint’s AutoTrack XP Product…
Really? You’re blaming customers? Saying it’s not your fault? Claiming to be the victim? Ummm, lemme use small words here: you’ve played that card. Shot that wad. From 2004 onwards, you own all failures. You should have had systems to watch for unauthorized access, and failure to properly safeguard credentials.
Oh wait. You did. We agree on that need. You had a system to do that, and you turned it off. So really, all that work you’ve done to convince people you’d turned a corner? This undercuts that. You need to come out with an explanation of why you turned off that system, and you need to do it this week. It needs to be comprehensible to the techies who are taking you to task all over the blogosphere. No legal defensiveness. Tell people what happened. This:
The FTC expressed concerns that not detecting the former government customer’s inappropriate access was inconsistent with ChoicePoint’s obligations under the Final Order, which ChoicePoint denies. Notably, the Supplemental Order does not allege any current or ongoing violations of ChoicePoint’s Final Order. Following the incident and acquisition by Reed Elsevier, new policies and practices were put into place to enhance the strength and quality of ChoicePoint’s security. As part of that effort, certain security enhancements were made to the ChoicePoint product at issue including providing additional information and steps customers could take to further safeguard their IDs and passwords.
is incomprehensible. Your customers know what you did. Why not talk about both what you did and what you turned off, and most importantly, why? I bet there are real reasons, but your lawyers ain’t saying. How many false positives was that system shooting out? What did it cost to investigate them?
Either come clean, or suck it up, and be glad it was only $275,000.
For more, “ChoicePoint Breach Exposed 13,750 Consumer Records,” or our prior posts on Choicepoint.
[Update: Comments from ChoicePoint in the comments.]
PS to C: This is, once again, my opinion, on my blog, and has nothing to do with my employer.