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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.


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