Fraud risks rise after theft
Published 12:00 am Wednesday, February 14, 2007
Identity theft and fraud are concerns after the latest string of local consumer data leaks.
Anthem Insurance recently told customers in Kentucky that backup computer tapes containing Social Security numbers were stolen from one its vendors, Concentra Preferred Systems in Massachusetts.
In a letter dated Feb. 2, Anthem said none of the data was labeled as Social Security numbers, and that because the technology required to access the information is difficult to get, they believe the information on the tapes wasn’t what thieves wanted.
The theft occurred in late October, according to Wellpoint Inc. spokesman Jim Kappel. Wellpoint, the parent company of Anthem, is based in Indianapolis.
“Among the items that were stolen were a lockbox with computer backup tapes,” Kappel said. “This is the first time a theft had occurred at that vendor’s facility,” Kappel said.
About 196,000 customers – most who live in Ohio, Indiana, Kentucky and Virginia – were affected by the stolen data, Kappel said.
Anthem was first notified in early November, but Kappel said since it took a considerable amount of time to determine who was affected, the company is just now notifying customers.
“While there is no indication that your information has been misused or disclosed in such a way that would adversely affect you, we want you to be fully informed about this matter,” the letter said.
Anthem is offering one year of free credit monitoring through Equifax Credit Watch, which will notify users of suspicious activities that could indicate identity theft.
Those with questions about the data breach are asked to call (800) 284-9779 during the hours of 8 a.m. to 6 p.m.
Vicki Bryant, spokeswoman for Concentra Preferred Systems, said the company is being proactive about what happened and said there has been no misuse of the stolen data.
Todd Leatherman, spokesperson for the Kentucky office of the attorney general, said consumers should take steps to protect themselves and evaluate their options.
“Recognize there is a risk of identity theft, and consider strongly taking advantage of the free monitoring that is being offered,” Leatherman said.
“Unfortunately, in Kentucky we don’t have a law for notification of security breaches,” Leatherman said.
But that may change with HB7, which would require companies to notify customers “in the most expedient time possible and without unreasonable delay,” Leatherman said.
Leatherman will testify today before the General Assembly on the bill, which lists House Speaker Jody Richards, D-Bowling Green, as one of the primary sponsors.
“The law passed the House last time, but it was delayed in the session and didn’t go through the Senate,” Leatherman said, mentioning he hopes for the bill’s passage this time around.
Leatherman said the office of the Attorney General will contact Anthem about the situation and ask for more information before any other action will be taken, he said.
Leatherman said the mentioning of Anthem’s situation reminds him of T.J. Maxx’s recent data breach, where consumers were told a hacker had accessed credit and debit card numbers going back in the company’s files to 2003.
But that is not the same as giving someone the keys to you identity, Leatherman said.
On a side note, today, the Attorney General’s office and the Council on Postsecondary Education-Kentucky Adult Education are issuing a consumer alert to students to beware of misleading General Educational Development information available on the Internet. The sites claim that you can take the test online, but you can only take the paper and pencil test at certified test centers.
But even the Better Business Bureau, a nonprofit agency that aims to protect consumers, isn’t safe from fraud.
A spoofing scam is using the BBB name and a false BBB e-mail address to entice recipients to access potentially damaging hyperlinks, according to Reanna Smith, BBB spokeswoman.
The Louisville area BBB received a call Monday from a member business that received one of these e-mails.
A firm from Kennesaw, Ga., had its computer system hacked, causing the system to generate thousands of counterfeit messages to businesses and consumers, which pose as a complaint filed with the BBB.
– If you have received one of these e-mails, contact the BBB in Louisville at (502) 588-0043 or you can check http://www.bbb.org for more information about phishing and for tips to avert other scams.