ChoicePoint Update

CHOICEPOINT UPDATE….You may recall that although ChoicePoint revealed the theft of 145,000 personal financial records last month, they actually knew about the theft back in October. Guess what? It turns out that ChoicePoint’s CEO and president both sold a bunch of stock in the intervening period:

In regulatory filings earlier this year, ChoicePoint disclosed that [Derek] Smith and [Doug] Curling reaped $16.6 million by selling company stock after they became aware that scammers had broken into their databases, but before the company announced the breach Feb. 15. The stock has lost about 15% of its value since then.

Just a coincidence, I’m sure. The company also announced that they were making some procedural changes about how personal data is released:

These changes are a direct result of the recent fraud activity, our review over the past few weeks of our experience and products, and the response of consumers who have made it clear to us that they do not approve of sensitive personal data being used without a direct benefit to them.

No kidding. Of course, I’d be a lot happier if some additional changes were made via the collective authority of all of ChoicePoint’s consumers, otherwise known as the federal government….