IDentityTheft 911 One Sheet
Client: IDentityTheft 911, a national provider of identity and data theft prevention and resolution services for insurance companies, banks, and member organizations.
Challenge: IDentityTheft 911 wished to inform its clients and prospects about amajor data breach that had been in the news.
Result: Cap & Wing wrote up a “Client Alert” one sheet that hit on the specifics of the incident and positioned the client’s services as vital in the prevention and management of similar crimes.
A major breach affecting soldiers and their families highlights the need for all companies managing customer information to establish protective systems in advance of data loss.
Breach Exposes 5 Million Military Patient Records
Data breaches aren’t always caused by an organized hacker attack. In September 2011, a high-profile breach occurred when a thief used the decidedly low-tech method of removing tapes from a parked car in San Antonio.
The tapes had been in the care of an employee of Science Applications International Corp. (SAIC), a Fortune 500 company which counts TRICARE, the U.S. military’s health plan, as one of its clients. The stolen tapes contained TRICARE data for 4.9 million active and retired military personnel and their families. Included were Social Security numbers, addresses and phone numbers, as well as sensitive medical information.
Since news of the theft went public, SAIC officials have issued statements downplaying the risks. They claim that retrieving the tapes’ data would require technical know-how unavailable to a random thief. At the same time, officials acknowledge that if the theft was planned, the perpetrator would likely possess the equipment and knowledge to access the sensitive data. Naturally, that information could be used for identity theft crimes.
Data Breach Facts
SAIC notes that the tapes were stolen while being transported “in compliance with the terms of their contract.” Whether the breach can be blamed on bad luck, unvetted procedures, or employee negligence, the crux of the matter is SAIC now faces public relations and logistical challenges as it works to rectify the situation. The company must also incur new financial burdens to cover breach notification requirements, crisis public relations and notification costs, to name a few.
In general, the average total breach cost per company hit a new high of $7.2 million in 2010 and the average cost per compromised customer reached $214. Considering that this breach entailed 4.9 million people, if SAIC’s expenses conform to this average, the data breach will cost the company in excess of $1 billion.
Safeguard Your Business and Customer Data
When a breach occurs, Identity Theft 911 can mitigate costs and damages. As the nation’s premier identity and data risk management services provider, we can even reduce the odds of a breach occurrence before it happens. Our comprehensive breach services include:
- Expert advice and preparedness tools for breach avoidance best practices
- A customized incident response plan that mitigates risk
- Assessment of breaches and response support
- Notification of affected individuals, credit bureaus and government offices
- Personalized fraud assistance to all notification recipients