"These changes are a direct result of the recent fraud activity, our review over the past few weeks of our experience and products, and the response of consumers who have made it clear to us that they do not approve of sensitive personal data being used without a direct benefit to them," said Smith. "We apologize again to those consumers that may be affected by the fraudulent activity. We remain committed to helping them take active steps to protect their personal data and to assisting law enforcement officials who are investigating the attacks on consumer's identities."
The company said the sale of consumers' sensitive personal information will continue where it is needed to complete or maintain-consumer driven relationships such as obtaining insurance, employment, or tenant screening or for an individual to gain access to his or her own data or to provide authentication and fraud prevention tools to large, accredited corporate customers where consumers have existing relationships.
The company has strengthened its customer credentialing procedures and is presently re-credentialing broad segments of its customer base, including all small business customers.
Additionally, the company has created an independent office of Credentialing, Compliance and Privacy that will report to the Board of Directors' Privacy Committee. Based in Washington, DC, this office will oversee improvements in customer credentialing processes, the expansion of a site visit-based verification program, and implementation of procedures to expedite the reporting of incidents. Additional details about the office and the person who will lead this new organization will be released next week.
Smith also emphasized that the company is helping consumers whose identities may have been compromised by those who fraudulently obtained information from ChoicePoint during the course of last year. "We hope that affected consumers will use the help line and to take advantage of the free 3-bureau credit reports and credit monitoring we have made available for them," he said.
The U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on Identity Theft: Recent Developments Involving the Security of Sensitive Consumer Information, next week. U.S. Senator Bill Nelson is currently working on drafting a revision to the Fair Credit Reporting Act which would make it harder for data brokers such as ChoicePoint to skirt FCRA requirements through the design of their information products.
