Hello, I am looking for someone to write an article on Data Breach at ChoicePoint. It needs to be at least 1250 words. In addition to this, the sufficiency of fines imposed on the ChoicePoint and effectiveness of the changes implemented by the organization concerning data security are also discussed.
This paper aims to study and discuss data breaches from different perspectives while referring to the renowned data breach incident at ChoicePoint. The organization purchases the personal information of individuals including their names, birthdates, credit histories, social security numbers, employment data, etc. These are then sold to different government agencies and businesses. Hence, a significant number of marketing, accounting, human resources, and finance managers depend upon ChoicePoint to gain background information, verifications and customer leads. In 2000, ChoicePoint failed to protect its information records while selling them to unauthorized customers. This led the company to substantial losses and it had to pay fines for the next few years.
In this paper, the root causes of this event are discussed including the prevention methods against a data breach. Moreover, the sufficiency of fines imposed on the organization is discussed and the changes implemented by the organization after the data breach incident are also critically analyzed.
There are certain causes due to which customers’ information at ChoicePoint was compromised. For instance, the Federal Trade Commission claims that the company did not have realistic procedures to screen the potential subscribers which indicates substantial application issues. Hence, it can be said that ChoicePoint failed to recognize the obvious threats present within its system. The Federal Trade Commission further declares that ChoicePoint did not take notice of its inappropriate application procedures while failing to keep a check on subscribers even after getting notifications from law enforcement agencies regarding the fraudulent activities similar to those identified in 2001 (Farrell, 2006).
Another significant .cause due to which the consumer data was easily misused by subscribers was the violation of the Fair Credit Reporting Act by ChoicePoint.