ChoicePoint Tops 2005 IT Losers List

ChoicePoint, a leading provider of consumer information and database searches, has been put at the top of the “losers list” for TechTarget’s annual IT winners and losers of 2005, for their data security debacle that compromised 145,000 customer records and exposed the personal information in these records to hackers.

From the article —

ChoicePoint: The database broker tops the loser list both literally and figuratively after emerging as the poster child for corporate data insecurity. In September 2004, the company’s customer authentication processes were compromised; hackers accessed 145,000 customer records. Amazingly, the company waited until the following February to publicly disclose the breach, resulting in at least 750 cases of identity theft. Sure, there were plenty of other companies that fell prey to hackers and bad data management — and shame on them (i.e., LexisNexis and DSW). But ChoicePoint takes the prize because of its failure to manage the crisis appropriately. Not only did it wait some five months before notifying customers who were victims, it also seemingly underestimated the extent of the damage, adding another 17,000 names just last month in its quarterly report to the SEC. And the kicker? ChoicePoint actually had the audacity to charge victims seeking to access their information.

You can read the full list of TechTarget’s 2005 IT winners and losers @ 2005’S IT WINNERS AND LOSERS