The FTC alleged that ChoicePoint turned over sensitive personal information to subscribers whose applications raised obvious “red flags.” ChoicePoint approved contracts with customers who used commercial mail drops as business addresses and reportedly used fax machines at public commercial locations to send multiple applications for purportedly separate companies, the FTC said.
The FTC charged that ChoicePoint violated the U.S. Fair Credit Reporting Act (FCRA) by giving credit histories to subscribers who did not have a permissible purpose to obtain them, and by failing to maintain reasonable procedures to verify subscriber identities.
The agency said that ChoicePoint also violated the U.S. FTC Act outlawing unfair and deceptive business practices by making false and misleading statements about its privacy policies. Among the company's past privacy statements: “ChoicePoint allows access to your consumer reports only by those authorized under the FCRA" and “Every ChoicePoint customer must successfully complete a rigorous credentialing process. ChoicePoint does not distribute information to the general public and monitors the use of its public record information to ensure appropriate use.”
ChoicePoint's data breach announcement in February, spurred by a 2003 California breach notification law, was the first of dozens of such announcements in 2005. More than 20 states have since passed breach notification laws, and the U.S. Congress is considering a national law.
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Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.
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The emergence of WLANs has created a new breed of security threats to enterprise networks.
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