Marriott Loses Data on 206,000 Customers

By Martin H. Bosworth
ConsumerAffairs.com

December 28, 2005

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The Marriott hotel chain's time-share division, Marriott Vacation Club International (MVCI), said it has lost data tapes containing the credit card and Social Security numbers of 206,000 time-share customers, owners and MVCI employees.

"We regret this situation has occurred and realize this may cause concern for our associates and customers," said Stephen P. Weisz, MVCI president, in a statement.

"We have recently mailed notifications to associates, timeshare owners and timeshare customers and are available to answer any questions they may have."

The tapes were first reported as missing in mid-Nov. 2005, according to the Washington Post. MVCI conducted an internal investigation to find the tapes and the individuals responsible for losing or stealing them, with no success.

The company then notified the Secret Service and several financial institutions before notifying its customers and making the statement.

It's not known if the tapes were misplaced or stolen. Ed Kinney, MVCI spokesperson, would not divulge if any personnel had been disciplined or fired over the incident.

MVCI said it would set up a special Web site, telephone number, and e-mail address to field questions and information regarding the incident. The site -- www.vacationclub.com/datasecurity was not working as of this writing.

MVCI has also offered a year of free credit monitoring to anyone whose data might have been compromised in the disappearance.

A Record Year

The MVCI data loss caps off a year of astonishing data breaches, online frauds, and identity thefts.

Beginning with ChoicePoint's loss of 145,000 records to identity thieves, and encompassing companies from DSW to LexisNexis to Blockbuster, 2005 will go down in history as the year identity theft and data security became a nationwide concern.

Although there was no Congressional legislation passed this year to prevent or better protect against identity theft and online fraud, there are several competing pieces of legislation pending for 2006 that will address the issue in different ways.

Consumer advocates and privacy rights activists are concerned that many of the federal bills will trump stronger state laws that offer consumers better protection against data theft and fraud.

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