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thedrifter
06-13-06, 01:13 PM
June 19, 2006

Loss prevention
Theft of veterans’ personal data spurs outcry from lawmakers

By Rick Maze
Times staff writer


Lawmakers are promising to protect service members and veterans from identity theft after admissions from the Department of Veterans Affairs that personal information on up to 80 percent of the military was stolen.

The Pentagon, which discovered the records of 2.2 million active-duty, Guard and reserve members were part of a larger theft of data on more than 26.5 million veterans, plans to notify people through a notice on individual Leave and Earnings Statements, said Army Lt. Col. Jeremy Martin, a Defense Department spokesman.

The names, birthdates and Social Security numbers of 1.1 million active-duty, 430,000 National Guard and 645,000 reserve personnel may have been included in computer files stolen from the home of a VA employee who had a laptop, external hard drive, compact discs and flash memory sticks filled with various databases, VA officials said.


Exactly what information was taken remains unclear, as news has seeped out through several announcements. First came word that the names, Social Security numbers, telephone numbers, addresses and birthdates of 26.5 million veterans were stolen.

Later, VA expanded the list to include some military survivors and veterans exposed to mustard gas, and again to add some Navy personnel who had re-enlisted and National Guard members who had demobilized, before unveiling the latest wrinkle — which added 2.2 million active-duty and reserve personnel.

VA officials said in a statement that law enforcement agencies investigating the incident “have no indication that the stolen information has been used to commit identity theft,” but congressional aides monitoring the investigation say it can take months before a person learns someone has stolen his or her identity.

Rep. Steve Buyer, R-Va., the House Veterans’ Affairs Committee chairman, said June 8 he has no confidence that the VA knows about everything that was stolen, but vowed to take whatever steps are necessary, including creating a new veterans’ claims system, to protect anyone whose identity is stolen as a result of the VA’s lapse from suffering financially.

“To me, it is important that government takes responsibility for this breach of faith and mitigates any loss,” said Buyer, an Army Reserve colonel.

Rep. Heather Wilson, R-N.M., an Air Force veteran, has a specific plan. She introduced a bill May 25 that would create a special office to handle claims and have the government pay for credit monitoring and credit reports.

Democrats have introduced similar bills in the House and Senate. Rep. John Salazar, D-Colo., chief sponsor of one such bill, said the government must act quickly. Misinformation and delays about what records may be lost “hurts veterans and military families at a time when we should be taking aggressive steps to protect their identities and financial standing,” he said.

The situation began in early May, when a VA employee violated policy by taking home a huge cache of data on VA and military beneficiaries. The employee’s Maryland home was burglarized, and all the data was lost.

“The more you poke at a cow pie, the more it stinks,” Salazar said. “The last month has been an embarrassing display, with the VA consistently failing to provide timely information about the security breach.”

Rep. John McHugh, R-N.Y., chairman of the House Armed Services personnel subcommittee, said the theft of personal data of current service members appears to be an unexpected consequence of efforts to increase data sharing between the Pentagon and the Department of Veterans Affairs to better serve people.

Best intentions

“The intent was seamless transition, and that is a good thing,” he said. But no one imagined at the time that a VA employee would take records home, without permission, and that a laptop computer and data storage devices containing military and veterans’ records would be stolen, McHugh said.

“We have far more questions than answers,” McHugh said. “We have to assume the worst, that almost any Department of Defense data shared with the Department of Veterans Affairs could have been lost in this theft.”

Martin said defense officials “don’t believe that the data loss will exceed the current numbers announced by the VA,” and promised any new information would be “promptly reported to all affected service personnel.”

Secretary of Veterans Affairs Jim Nicholson, testifying June 8 before the House Government Reform Committee, said he shares lawmakers’ outrage.

“I’m at a loss over the fact that an employee would take this data home against VA policies and put so many people at risk,” he said.

He also said he is “gravely concerned” that it took 13 days for the employee’s supervisors to notify him of the security breach.

Still, he accepted full responsibility. “I’m in charge of the department, and I will fix this,” he said. “It won’t be easy, and it won’t be overnight — but it’s doable.”

Buyer said the situation is nothing less than a breach of fiduciary responsibility by the government.

“We were the custodians of the information that was lost, and we now need to mitigate this loss, protect veterans and right the wrongs” of the VA’s information technology system, he said.

Staff writers Gordon Trowbridge and Aimee Curl contributed to this story.

Ellie

thedrifter
06-13-06, 01:14 PM
June 19, 2006

Officials scramble to propose raft of new protections

By Rick Maze
Times staff writer


Lawmakers are pushing hard for new safeguards to ensure that nothing like the massive loss of personal data on millions of veterans and service members happens again.

Rep. Steve Buyer, R-Ind., chairman of the House Veterans’ Affairs Committee, said he wants a complete reorganization of the Department of Veterans Affairs’ information technology system to provide more centralized control.

Rep. John McHugh, R-N.Y., chairman of the House Armed Services personnel subcommittee, said he also expects the Pentagon to be more careful about what data it provides to other agencies.

Reorganization, new security policies and more scrutiny of who has access to computerized data are typical government responses when problems arise.


But, Buyer said after a June 8 meeting with private-sector companies that have had their own problems with theft or loss of personal records, that there are some common-sense steps to be taken.

“We really need to have some safeguards so you simply cannot remove data and take it home with you,” Buyer said.

“No rules, no organizational structure, is going to stop problems as long as it is possible for someone to walk out the door with data,” he said.

Taking action

Testifying before the House Government Reform Committee, which has launched its own investigation into government-wide information security policies, Secretary of Veterans Affairs Jim Nicholson said the VA is taking actions on a number of fronts.

These include hiring a special adviser on information security, issuing new reminders on protecting sensitive material, examining every laptop computer in the agency and making a list of every person and every job with access to sensitive computer files.

Nicholson also said the VA would set aside one week in late June for managers and staff to review all privacy policies. The policies seem to be fine, he said, but the ability to punish federal workers who violate polices could be strengthened to include tougher criminal penalties.

“It’s too hard to discipline people in the civil service,” he said. “We need to put teeth into the enforcement mechanism for compromising careers and mishandling personal information.”

Buyer and Rep. James Walsh, R-N.Y., chairman of the House Appropriations military quality-of-life and veterans’ affairs subcommittee, held a roundtable discussion with representatives of TriWest, Visa, Citigroup and other companies that have had their own problems with safeguarding sensitive data.

The companies supported Buyer’s basic idea of more centralized control to provide more internal limits on sensitive information. That also allows for more careful training of employees with access to databases, and for tracking who is using the data, Buyer said.

Centralized control might not have stopped the VA from losing personal data in the most recent instance, but it would have allowed VA officials to determine what had been lost more quickly, Buyer said.

Staff writer Aimee Curl contributed to this report.

Ellie

thedrifter
06-13-06, 01:14 PM
June 19, 2006

Preventing identity theft

By Karen Jowers
Times staff writer


Veterans, active-duty members and their families should be on the lookout for a raft of scam artists in the wake of the theft of their personal information, according to the Federal Trade Commission.

In such cases of well-publicized thefts, scam artists emerge to prey, sending out “phishing” e-mails or phoning people in an attempt to get them to divulge personal information, FTC officials said in a consumer alert.

Scam artists can use such information to drain victims’ bank accounts and run up huge credit card bills. Thieves often try to lure people to a Web site that looks genuine, but is bogus, and is used to get the information.

The FTC offers these tips:


• The Department of Veterans Affairs, the FTC and other government agencies, as well as legitimate businesses, do not contact people by e-mail or by telephone to ask for — or confirm — Social Security numbers, account numbers or any other personal information.

• Never click on an unsolicited e-mail. If you want to go to the Web site of the legitimate entity, type in the address, such as www.va.gov.

• Do not give out your personal information to anyone over the phone, through the mail or over the Internet, unless you initiated the contact and know or can verify whom you are dealing with.

As of June 8, the VA and FTC had received no reports that any of the stolen data has been used for nefarious purposes.

Ellie