Data theft wipes $6m off ChoicePoint profits


Data theft wipes $6m off ChoicePoint profits

Antony Savvas

Data broker ChoicePoint took a $6m (£3.4m) hit in the second quarter as a result of an identity theft scam earlier this year.

ChoicePoint, which specialises in selling credit rating information on citizens to third parties, lost data on 145,000 Americans after identity thieves set up a fake credit-checking agency.

The $6m charge comes on top of the $5.4m ChoicePoint spent on communicating with individuals affected by the identity thefts, legal fees and other professional services.

The second quarter charge reduced the company's operating profits to $58.9m from $59.5m in the same quarter last year.

Profits would have been $64.9m without the charge, said the company.

ChoicePoint’s sales went up 15% to $266m.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy