Texas Warns Businesses to Guard Consumer Data

April 17, 2005
Texas Attorney General Greg Abbott is warning Texas businesses that manage databases with sensitive personal information to ensure the security of the data.

"Recent events in California, New York and elsewhere involving ChoicePoint, DSW Shoe Warehouse, LexisNexis and other companies that store sensitive data show an alarming breakdown of security that has compromised consumers' sensitive personal information," said Abbott.

"Names, Social Security numbers, driver's license numbers and financial information of hundreds of thousands of consumers, many in Texas, may have been compromised or even unleashed to identity thieves. This trend must be halted now and the perpetrators brought to justice."

Abbott has sent letters to LexisNexis and DSW to underscore his concerns about private consumer information falling into the hands of criminals who could exploit the information and cause widespread ruin of personal finances of Texans.

He also has been in communication with ChoicePoint and California law enforcement officials concerning Texas consumers who were possibly affected by that company's security breach this year.

In the letters, the attorney general asks the companies to provide his office information about the number of Texans possibly affected by these breaches and a description of the information illegally obtained. Abbott stressed the need to fast-track the information gathering process and to notify consumers at the earliest possible opportunity.

The Attorney General's Office is currently working with authorities in other states and with the U.S. Federal Trade Commission and U.S. Secret Service to strengthen efforts of these companies to protect sensitive information and avoid serious breaches in the future. The Texas Legislature is also considering new bills to address this problem.

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