Data breach victims get $19.05 payout

By Liam Tung on Sep 23, 2010 9:31 AM
Filed under Security

Busy day for administrator.

An administrator working for the US Federal Trade Commission has been given the task of mailing 14,023 cheques for US$18.17 ($19.05) to victims of the massive 2005 ChoicePoint data breach.

The data aggregation company (acquired by publishing giant Reed Elsevier in 2008) paid a $10 million settlement to the FTC in 2006 after it admitted that the financial records of 163,000 consumers in its database had been compromised due to its lax security.

It was also ordered to pay $5 million in "consumer redress".

The US$18.17 consumers will receive was for "time they may have spent monitoring their credit or taking other steps in response" to Choice Point violating the 2006 settlement, according to the FTC.

The reimbursement stems from a second settlement the company made with the FTC in 2009 as a result of it breaching the conditions of its first.

The FTC claimed that the data breach resulted in at least 800 cases of identity theft.

 
Follow us on Facebook and Twitter
 

Copyright © iTnews.com.au . All rights reserved.

Data breach victims get $19.05 payout
 
 
 
 
 
Top Stories
iPad full-year sales tipped to decline for first time
"Massive deceleration" in global tablet market, reports IDC.
 
Sydney reseller lands leading role with Hoyts cinemas
Shoretel partners oust two incumbents for cinema's digital switch.
 
Eyes on ASX, Cirrus Networks recruits iiNet and L7 star duo
Acquisition veterans appointed chairperson and director.
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
What would help your business most?


Latest Comments
CRN Magazine

Issue: 333 | November 2014

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.