USLegal Reporter » Identity Theft

VA Settles Data Theft Class Action for $20 Million

Dana Altman — Tue, 03 Feb 2009 20:57:26 +0000

In 2006, a Veterans Affairs Department data analyst lost a laptop containing names, Social Security numbers, and birthdates of up to 26.5 million veterans and active-duty members. The data analyst had taken the laptop home without authorization, and it was later stolen when the house was burglarized. Although it was later retrieved intact, the data analyst and his supervisors were found at fault by the VA inspector general. Those whose information was put at risk were not notified for almost three weeks after the data analyst notified supervisors of the laptop’s theft.

The Veterans Affairs Department settled a case for invasion of privacy originally filed by five veterans groups, agreeing to pay $20 million to veterans for exposing them to possible identity theft by losing their sensitive personal information. The money, which will come from the U.S. Treasury, will be distributed among veterans who can prove they suffered actual harm, such as physical symptoms of emotional distress or costs incurred for credit monitoring.

Source: http://www.breakinglegalnews.com/entry/VA-agrees-to-settle-for-20M-for-data-theft

Supreme Court to Define Identity Theft Punishment for Illegal Aliens

Dana Altman — Tue, 21 Oct 2008 16:21:59 +0000

The U.S. Supreme Court has agreed to hear a case involving the punishment of illegal aliens who use false Social Security and alien registration numbers that belong to a real person. A 2004 law makes a two-year prison sentence mandatory for aggravated identity theft. Aggravated identity theft under the statute is defined as knowingly using the identifying information of another in connection with certain other offenses.

At issue is whether the random selection of an identifying number that in fact belongs to a real person qualifies as knowing use for purposes of the aggravated identity theft statute. The defendant in the case, Ignacio Flores-Figueroa, a Mexican citizen, used a counterfeit Social Security card bearing his real name and a false Social Security number in order to obtain employment. Although it was unknown to Flores-Figueroa, the Social Security number belonged to a minor. The Court will decide whether the knowing use of false information is sufficient for a conviction or whether the accused must know the false information belongs to a real person.

Source: http://www.lexisone.com/news/ap/ap102108a.html

Feds Indict 11 in Massive Identity Theft Case

carrie — Tue, 05 Aug 2008 21:48:42 +0000

Eleven suspects are facing charges in what is being called by federal prosecutors the largest identity theft case that has ever been seen in the United States. The indictments were handed down today.

The Department of Justice (DOJ) says the suspects are part of a ring which is believed to have stolen more than 40 million credit and debit card numbers.

The numbers were stolen from shoppers at major US retailers including Boston Market, TJX Companies, Office Max, BJ’s Wholesale Club, Barnes & Noble Inc. and Sports Authority.

The suspects have been charged with fraud, identity theft, and conspiracy.

Sources: http://www.usdoj.gov/opa/pr/2008/August/08-ag-689.html

http://abcnews.go.com/TheLaw/story?id=5520147&page=1

Government Ignores Its Own I.D. Theft Warnings

Dana Altman — Wed, 02 Jul 2008 19:38:12 +0000

Against the Federal Trade Commission’s (FTC) warnings to prevent identity theft, the government still requires Social Security number on identification used to get many government benefits. At least 44 million Medicare insurance cards contain the beneficiary’s full Social Security number. Social Security numbers also appear on 8 million Defense Department identity cards used by active duty and reserve forces and their dependents, and on identification cards issued to military retirees. The Pentagon plans to remove the numbers, but not until 2014. Additionally, the Internal Revenue Service advises taxpayers to write their Social Security number on checks used to make payments.

“Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check,” was written in a warning by the FTC in a pamphlet sent months ago to every mailing address in the United States. The Social Security Administration offers similar advice. Most universities no longer use Social Security numbers. Private insurers, such as Blue Cross and Blue Shield, have recently issued new cards to roughly 200 million insureds to replace Social Security numbers with different identifiers. However, Medicare cards are claimed to be too costly to replace, with an estimated cost to the government of a half billion dollars to reissue.

The Pentagon will begin eliminating the Social Security number in stages starting at the end of this year. By 2014, the number will not be printed on any of the Defense Department cards except those for retirees who fail to request new IDs. The VA spent roughly $6 million to replace about 4 million benefit cards to remove the Social Security number and birth date and placed all sensitive information on a bar code and magnetic strip.

Source: http://www.lexisone.com/news/ap/ap070208d.html