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LexisNexis flap draws outcry from Congress
By Declan McCullagh
Staff Writer, CNET News.com
April 12, 2005 - It didn't take long for politicians to seize on the latest LexisNexis data leak as evidence that more federal laws are needed. After LexisNexis revealed on Tuesday that an intrusion into its Seisint databases may have compromised personal information on about 310,000 Americans, a tenfold increase on its previous estimate, members of Congress quickly pledged an aggressive response.
"Once again we're forced to ask, why should it continue to be legal to sell a person's Social Security number without permission?" said Rep. Joe Barton, a Texas Republican who heads the Energy and Commerce Committee. "If it takes a new law to protect people from identity thieves, so be it."
Added Sen. Dianne Feinstein, a California Democrat: "Not doing anything is not an option." Feinstein introduced a bill on Monday that would require that consumers be notified of certain types of security breaches.
The speedy bipartisan outcry after Tuesday's disclosure--the latest development in a series of high-profile security breaches--indicates that some form of legislation is likely to be enacted this year. The Senate Judiciary Committee plans to hold a hearing on Wednesday on the topic.
What's still unclear is what form it will take. During a hearing last month, Barton said he wanted to ban the sale of Social Security numbers. Other possibilities include mandating disclosures of security breaches or amending the Fair Credit Reporting Act to regulate the activities of data brokers like ChoicePoint and Acxiom.
LexisNexis, a unit of Reed Elsevier Group, said in a statement Tuesday that it has taken "a number of significant actions in recent weeks to further guard against these types of fraudulent intrusions at our customer sites and to enhance our security procedures and policies overall."
One bill, the Comprehensive Identity Theft Prevention Act introduced Tuesday by Democratic senators Chuck Schumer of New York and Bill Nelson of Florida, takes a hybrid approach. It would restrict the sale and display of Social Security numbers and require the Federal Trade Commission to focus more closely on identity fraud. The measure also would create an assistant secretary for "cybersecurity" in the Department of Homeland Security.
Liberal advocacy groups are egging Congress on. In testimony prepared for Wednesday's hearing, the Center for Democracy and Technology has endorsed "legislation that would tighten controls on the sale, purchase and display of Social Security numbers" and impose more regulations on corporations that collect personally identifiable information.
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Data breaks
High-profile breaches are finally waking lawmakers up to the need to make sure personal data is securely protected on computers.
LexisNexis
Date: March 2005
Incident: Hackers gained access to databases at LexisNexis' Seisint unit.
At risk: Personal information of about 310,000 U.S. citizens.
ChoicePoint
Date: February 2005
Incident: The data collection company confirmed that information from its consumer database was stolen.
At risk: Names, addresses and Social Security numbers of more than 150,000 Americans.
Bank of America
Date: February 2005
Incident: Bank lost backup tapes detailing the financial records of credit cards held by federal employees.
At risk: More than 1.2 million records in SmartPay charge card program, which has annual transactions totaling more than $21 billion.
PayMaxx
Date: February 2005
Incident: Flaws in the online W-2 service of PayMaxx exposed customers' payroll records.
At risk: Discoverer of the flaws claimed they affected more than 25,000 people. PayMaxx said only a small number of companies were involved.
SAIC
Date: February 2005
Incident: Desktop computers were stolen from the offices of Science Applications International Corp.
At risk: Personal information of current and past stockholders in the government contractor.
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Consumer Advocacy Group Joins Forces with Law Firm
The United Consumers Advocacy Network (UCAN) announced today an alliance with Apex Law Group and its national network of attorneys to offer legal support to clients of debt relief companies that subscribe to UCAN’s services.
North Huntington, PA (PRWEB) May 23, 2005 -- The United Consumers Advocacy Network (UCAN) announced today an alliance with Apex Law Group and its national network of attorneys to offer legal support to clients of debt relief companies that subscribe to UCAN’s services.
The alliance will offer a broader range of services ranging from basic advocacy to legal representation in court if a client is sued by a creditor or if a creditor violates a client’s consumer rights. Apex will also offer bankruptcy solutions to clients whose financial situation worsens and are unable to continue their debt relief program.
UCAN executive Dave Leuthold says that there is a growing need to protect consumers enrolled in debt relief programs against abusive collection practices and creditor lawsuits.
“As a third-party advocacy firm, creditors are usually willing to work with us once we get involved in a case,” explains Leuthold. “However, cases do arise that necessitate legal intervention and this new alliance gives us greater access to attorneys to safeguard clients from lawsuits and violations of consumer protection laws, such as the FDCPA.”
The Fair Debt Collection Practices Act (FDCPA) was passed in 1977 because of the tremendous volume of complaints the Federal Trade Commission received from consumers and consumer advocacy groups about unethical debt collection practices. Violations can be costly for debt collectors as each carries a potential $1,000 civil penalty in addition to actual damages suffered by the consumer. A class action lawsuit for FDCPA violations could cost a collection agency up to half a million dollars.
“Clients of debt relief companies can barely afford to repay their debts, much less an attorney to defend against creditor-initiated lawsuits,” explains Dharma Naik, lead consumer rights attorney for Apex. “This alliance provides legal assistance to clients who would otherwise fall victim to default judgments because they simply did not have access to an affordable attorney.”
UCAN services are available to clients of debt relief agencies who subscribe to UCAN’s services.
About UCAN:
The United Consumer Advocacy Network was formed in 2001 by experienced industry veterans to offer advocacy support and services for clients of debt relief agencies. UCAN serves the needs of debt relief companies and their clients as they face the growing problem of abusive, harassing and unfair practices of creditors and their collection efforts. For more information, please call 1-877-462-UCAN or visit their website at www.ucan.net.
About Apex:
Apex Law Group, LLC, is a law firm based in Columbia, Maryland, that offers bankruptcy, civil litigation and debt resolutions services. For more information, please call 1-877-502-2739 or visit their website at www.apexlawgroup.com.
Contact:
Dave Leuthold
1-877-462-8226
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UNITED CONSUMERS ADVOCACY NETWORK
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