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Choicepoint Term Paper

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Question 4. What are the key risk areas that ChoicePoint (and the data broker industry) as a whole need to address to protect its information and to minimize the negative perception (and the resultant likelihood of restrictive laws being passed) of the industry as a whole? [20 points]
Because the personal data industry is relatively new, there are not well defined data protection regulations. Regulations should be done at the federal level to maintain consistency and uniformity. Federal laws should stablish what information is collected, what is the retention period for the different types of data and what would be the procedure to dispose of the information. In the same way, these laws should dictate the minimum security requirements for any company in the data broker industry comply with. …show more content…

Data broker companies are putting at risk the identity of people that don’t even know that their data is been collected and sold to third parties, like marketers or magazines, No company should collect or transmit personal information, and only with legitimate reasons, unless the person gives consent before. The company should notify the person when someone requests their information, and whenever there is a breach the person needs to be warned so he/she can take steps to diminish the negative effects this can cause. In case of a data breach, the company that was in possession of the data should be liable and required to cover the expenses of any financial damage caused by the breach including clearing any negative information sent to the credit bureaus, as well as to provide credit monitoring plans. Question 5. To what extent did each of the following three areas (technology, people, and process) play in the ChoicePoint data breach? Explain. [20 points]

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