Thursday, July 07, 2005

UPS Loses Financial Records of CitiFinancial Customers

UPS Loses Financial Records, But Has a Bigger Problem in the latest breach of security. According to this linked account. UPS lost a box of backup data tapes containing records on 4 million customers. Lets see now. 40 million customer financial and personal records lost by CardSystems, plus 4 million lost by UPS from CitiGroup Financial, 145,000 ChoicePoint victims, 310,000 Lexis/Nexis victims, 1.4 million DSW victims, one million victims of Bank of America data loss and do you think there is any overlap there? Of course there is!

This means that it may be unlikely you can figure out where your identity theft originated or how your financial or other information was obtained by crooks who abuse it - but it is extremely likely that you will be among the increasingly large list of victims of these seemingly endless data breaches.

Shouldn't events like the UPS loss of packages containing sensitive financial information on 4 million people require more of its transportation company than a brown uniform and hand scanners? Why should transport of that sensitive data be given to UPS? Wouldn't the sensitive nature of the cargo, in this and many other cases, recommend say - armored trucks and armed guards to protect the information? Isn't the increased expense justifiable considering the cost of lawsuits sure to result in huge expenses to every company that suffers the next data breach?

I think this casually treated and transported information should be treated with more respect than cash, since it involves potentially greater financial losses when theft or loss occurs. Financial institutions and data aggregators holding sensitive financial and personal information should increase their storage, transportation and security budgets to protect this data. The slew of leaks, thefts and plain careless losses has already cost public confidence that may never be regained.

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posted by RealitySEO at 2:45 PM


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