Grant Gross
Senior Writer

FTC looks for more victims of ChoicePoint breach

news
Jun 19, 20072 mins

Breach victims have until August 18 to file claims with the FTC and get reimbursed from a fund ChoicePoint set up as part of its settlement

The U.S. Federal Trade Commission (FTC) is looking for victims of a data breach at ChoicePoint announced in early 2005.

Victims with out-of-pocket expenses due to the breach have until Aug. 18 to file claims and be eligible for payments from a $5 million fund that ChoicePoint agreed to pay in its January 2006 settlement with the FTC.

The FTC has now mailed reimbursement claim forms to 2,400 consumers who may have been victims of identity theft due to the breach, the agency said in a speech. The FTC has mailed claim forms to 1,000 consumers since December 2006, it said.

In addition, the FTC has created a Web site where consumers who do not receive a claim letter can download a claim form and get more information about the claims process.

Data broker ChoicePoint announced in early 2005 that identity thieves had set up fake businesses as a way to buy personal information from the company. The breach, affecting about 163,000 U.S. residents, set off a debate in the U.S. Congress about data breach protections, but Congress has yet to pass a data breach notification bill.

In its January 2006 settlement with the FTC, ChoicePoint agreed to pay a $10 million fine in addition to the $5 million victims fund. The company also agreed to third-party security audits every other year until 2026.

ChoicePoint also agreed in May to pay a $500,000 fine and change the way it screens new customers in a settlement with 43 states and the District of Columbia.

Claim forms must be postmarked by Aug. 18. The amount applicants receive will depend on a number of factors, including the total number and size of claims that the agency receives, the FTC said.

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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