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LexisNexis Admits Data Loss

March 10, 2005
LexisNexis has called in law enforcement agencies after conceding a security breach involving about 32,000 consumer records. The revelation follows the embarrassing loss of more than 100,000 customer records by ChoicePoint, another private database company.

The company, a division of Reed Elsevier, the world's largest publishing group, expressed regret at the breach and vowed to dedicate more resources to restricting access to sensitive information. It said the information disclosed included names, addresses, social security and drivers license details. Credit history, medical records and financial information were not compromised.

LexisNexis collects personal information and re-sells the data to business, financial services and legal and government customers. It said that identification codes and passwords were stolen "by third parties".

The data held by LexisNexis and its affiliated company, Seisint, are used in areas such as authenticating identities and checks on credit card and insurance fraud.

More than 635,000 people reported cases of identity theft and consumer fraud in the United States last year, according to the Federal Trade Commission. The FTC estimates more than half of this was internet-related.

Organized criminal gangs are targeting internet databases to obtain personal information. Security companies have warned that employees are being offered large sums to sell data. Last month a former worker at America Online pleaded guilty to charges that he sold user names and passwords from the internet service provider's subscriber list to a spammer.

LexisNexis said it has already taken, or will soon take, actions to enhance security to beef up security. These actions include:

• enhancing ID and password administration procedures and requirements for customers;
• dedicating additional resources to protection of consumer privacy;
• working with customers to reinforce the importance of consumers' privacy; and
• working with law enforcement for further insight and assistance on new practices and techniques for thwarting criminal activities.

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