Tuesday, June 07, 2005

some times are good, some times are bad, it's all a part of life


Citigroup Reports Lost Tapes Contain Data On 3.9 Million Customers > June 6, 2005:
Citigroup Inc. on Monday disclosed that tapes containing information on 3.9 million customers were lost last month by UPS Inc. while in transit to a credit bureau in Texas. The tapes contained information, including social security numbers, about CitiFinancial branch network customers in the United States as well as customers with closed accounts from CitiFinancial Retail Services.
CitiFinancial provides personal, auto, and home equity loans; CitiFinancial Retail Services provides private-label credit cards for retailers.
Citigroup said there was no reason to think the information had been used inappropriately, nor has it received reports of unauthorized activity. 'There is little risk of the accounts being compromised because customers have already received their loans,' said Kevin Kessinger, executive VP of Citigroup's global consumer group, in a statement.
Beginning in July, such data will be sent electronically in encrypted form.

Is UPS really the best way to send data like this? Considering the potential liability risk of this data being lost (which it was), wouldn't a private courier have been a wiser option? This looks like nice fresh ground for class-action lawsuits.