The US Federal Trade Commission has announced that data broker ChoicePoint has agreed to pay US$15 million to settle charges it did not properly protect consumers’ personal financial information.
The FTC fined the company $10 million and said ChoicePoint would pay an additional $5 million to compensate consumers. The FTC says about 800 people have been victimized by identity theft stemming from the breach, but more would be eligible for compensation as cases arise. The FTC says it is establishing a fund and will develop a plan to get compensation to victims.
The settlement requires ChoicePoint to install new procedures so consumer reports are used only by legitimate businesses for lawful purposes. It also must create an information-security program, to be audited by an independent security professional every other year until 2026.
