ChoicePoint Suffers for Failing to Protect Consumers

In 2005, data broker ChoicePoint paid with its capital, its stock price, and its reputation when it failed to secure the personal data of 163,000 individuals, allowing identity thieves to obtain the information. ChoicePoint compounded its own injury by initially notifying only victims who happened to live in California, the only state at the time with a law mandating notification in the event of data loss. The ensuing public outcry forced ChoicePoint to notify all affected individuals, but not before its reputation was further tarnished.