WRITTEN TESTIMONY

FOR THE UNITED STATES SENATE

COMMITTEE ON COMMERCE, SCIENCE AND TRANSPORTATION

HEARING ON IDENTITY THEFT AND DATA BROKER SERVICES

HEARING DATE: MAY 10, 2005, 2:30 PM

SENATE ROOM 253 SENATE RUSSELL BUILDING

TESTIMONY PROVIDED BY MARI J. FRANK, ESQ.


Good morning, Chairman Stevens, Co-Chairman Inouye, Presiding Senator Smith, Honorable committee members, and invited guests. Thank you very much for the opportunity to address you today regarding concerns about identity theft and Data Broker Services. I am grateful that Congress is studying this issue to craft strong measures to prevent identity theft in our society.Your desire to shine the light on these problems and make needed changes deserves commendation. I also thank this panel of witnesses who will educate us about these issues from all perspectives and help to create solutions so that we may better protect our personal and confidential information and reduce this insidious crime. Additionally I thank Senator Bill Nelson for introducing S 500, The Information Protection and Security Act, which I support because it addresses the need for responsible and reasonable oversight over the Data Broker Services Industry while providing fair information principles.I will be happy to assist this committee with other legislative proposals such as S 768 and others. Since this issue affects each one of us, I encourage a bi-partisan collaborative approach to protect ourselves from identity theft.


My name is Mari Frank. I am an attorney, privacy consultant, and author of several books on identity theft from Laguna Niguel, California. (My two newest books are Safeguard Your Identity: Protect Yourself with a Personal Privacy Audit (Porpoise Press, 2005 and From Victim To Victor: A Step By Step Guide For Ending the Nightmare of Identity Theft 2nd Edition with CD, Porpoise Press, 2005) www.identitytheft.org.) I serve as a volunteer Sheriff Reserve for the Orange County, California Sheriff Department, and sit on the Advisory Board of the State of California Office of Privacy Protection which focuses on privacy and identity theft safeguards for California citizens. Additionally, I am a member of the State of California's Department of Motor Vehicle's Task Force on Privacy and Identity Theft, I've served on the Los Angeles District AttorneyŪs Office Task Force on Identity Theft, and I am an advisory board member to the non- profitIdentity Theft Resource Center. I have personally assisted myriad victims across the country with my personal time and educational materials, and have donated hundreds of pro-bono hours to assist victims.I have had the privilege of testifying before several legislative bodies and four US Congressional committees, and have consulted with national corporations on how to protect their clients, customers, vendors, employees, and their businesses from the challenges of and identity theft and other privacy concerns. I am a certified trainer for Continuing Legal Education of the State Bar of California, a former law professor, and I presently teach Conflict Management at the University of California, Irvine.


My own identity was stolen (in 1996) by an impostor who paraded as me- stealing my personal as well as my professional lawyer identity.While wrecking my credit, she also destroyed my sense of security and peace of mind.My impersonator obtained over $50,000 using my name, purchased a red convertible Mustang, and even caused me to be threatened with a lawsuit by a rental car company for the auto that she damaged in an accident. It took me almost a year and over 500 hours to clear my records and regain my credit and my life. I accumulated five banker boxes of correspondence, and lived in fear of how else this invisible person might harm me and my children. I finally learned that while working as a temporary secretary in a law office four hours from my own office, my evil twin (who I never met) was able to access my credit history (as well as the profile of other lawyers) from an information broker who had a contract with that office.My impostor did not need to prove who she was or establish that she had a permissible purpose to download the profile, so it was instantly faxed to her.From that report, she obtained my social security number and other personal and financial facts to become my identity-clone. When that data broker, situated across the country, electronically transferred my consumer profile to a criminal in a city 4 hours from my home, it was beyond my control to do anything to prevent the fraud.


From that arduous nightmare, I gained great insight into the tribulations that victims endure- I became an expert by necessity. After speaking with several thousand victims, I have learned that most victims are not negligent with their personal information, and that no amount of "consumer education" or vigilance will protect them from identity theft if their information is acquired in a security breach by an unscrupulous employee, or by faulty information handling practices of entities that maintain their data. Consumer privacy education is important to minimize your risk and keep you informed as to barriers to erect, but it won't guarantee that your identity won't be stolen by a data breach.


Your esteemed committee has invited me to focus on the concerns and problems experienced by victims of identity theft and security breaches. I will concentrate my testimony on answering the following questions:


I. WHAT ARE THE MOTIVATING FACTORS FOR STEALING YOUR SENSITIVE INFORMATION?


II. HOW DOES IDENTITY THEFT OCCUR, AND WHAT ARE THE UNIQUE ISSUES AS TO DATA BROKERS?


III. WHAT ARE REAL LIFE EXAMPLES OF IDENTITY THEFT AS THEY RELATE TO INFORMATION BROKERS?


IV. WHAT IS THE IMPACT OF SECURITY BREACHES ON CITIZENS WHOSE INFORMATION IS STOLEN?


V. WHAT NEEDS TO BE DONE WITH REGARD TO MINIMIZING THE RISKS OF IDENTITY THEFT WITH REGARD TO INFORMATION BROKERS?


VI. WHAT ELSE IS NEEDED TO PREVENT AND RESOLVE IDENTITY THEFT?


I. WHAT ARE THE MOTIVATING FACTORS FOR STEALING YOUR SENSITIVE INFORMATION?


In our data driven society your personal information is readily transferred across the world in a nano-second through networks and on the Internet (whether or not you are a computer user).Your personal information, worth more than currency itself, can be used to apply for credit cards, credit lines, mortgages, cell phones, insurance, utilities, products and services etc. all without your knowledge.A fraudster can do anything you can do with your identifying information- and worse- even do things you wouldnŪt do such as commit crimes, seek revenge, or engage in terrorist activities.


A.    WHAT IS IDENTITY THEFT AND HOW IS IT USED?

Identity theft occurs when your personal (or business) identifying information such as your name, social security number, address, birth date, unique passwords, business name or logo, or even biometric information, is used or transferred with the intent to use itfor an unlawful purpose. Below are the main motivations of fraudsters:


1.Financial Gain-This includes credit, loans, new accounts, mortgages, employment, health care, insurance, welfare, citizenship, and other governmental and corporate benefits- anything that has a dollar value. The fraud may take place in multiple jurisdictions, and purchases and transfers can be made by phone, fax, on-line or in person. Usually, the perpetrator can buy or žlegallyÓ obtain a driverŪs license, create checks on a computer with the victim's name, obtain, buy, or create other identity documents including medical cards, credit cards, passports, etc.


2.Avoiding Arrest or Prosecution- A criminal commits crimes in the real world or virtual electronic world, or terrorist acts using the name and identifying information of another person.Often the perpetrator also commits financial fraud as well to supplement her income.In a recent meeting I attended with Senator Feinstein andlaw enforcement, detectives and District Attorneys in California(and also in Washington) reported that that 80%- 90 % of identity thieves who are caught also have a pending or priormethamphetaminecharge against them as well. In my own case, my impersonator was a "meth" addict who stole the identity of several lawyers to obtain credit and funds to feed her drug habit.


3. Revenge - One can remainÓ invisibleÓ by stealing an identity to hurt another person. This type of fraud may occur between ex-spouses, former business partners, ex-employees, disgruntled staff or angry customers.We also see this type of fraud committed in businesses where one business owner will want to ruin the reputation of another. It can occur off-line or on-line. I've been contacted by employees, and business owners who learned that their e-mail address was used to discredit them.


4. Terrorism (Breaching Homeland Security) -The September 11, 2001 terrorists had opened 14 accounts at a Florida bank, using false social ›› security numbers and other documents. They obtained credit cards, apartment units, leased cars, and ››››››››››› fraudulently charged airline ›››››› tickets.They not only did this for financial gain, but also over half of them likely suspected that their true names were in FBI files as suspected terrorists, so theycommitted total identity take-over to avoid arrest. And worse, they used false identities to get revenge against our country.›› In Senator Feinstein's meeting with law enforcement in California on March 29, 2005, law enforcement ›››››››› reported that suspected terrorist cells have been apprehended with false ››››››››› documents in California. It is well known that foreign nationals have covertly crossed our borders and have easily obtained stolen identity documents to hide under the "radar screen".


II. HOW DOES IDENTITY THEFT OCCUR, AND WHAT ARE THE UNIQUE ISSUES AS TO DATA BROKERS?


A.WAYS THAT YOUR PERSONAL INFORMATION IS STOLEN   

The scope and extent of the problem of identity theft is rampant. In 2003 the FTC conducted a survey found almost 10 million new victims that year, and 27.3 million victims in the previous five years, with a cost to consumers of $5 billion and a loss to financial institutions of $48 billion. (www.consumer.gov/idtheft)According to the Identity Theft Resource Center, victims paid an average of $1400 in out of pocket costs (not including attorney fees) and spent an average of 600 hours to regain their credit and identity.(www.idtheftcenter.org) The monetary costs are miniscule compared to the devastation, stress and violation one feels when they are denied a job, unable to get an car or apartment, lose the opportunity for a home, lose insurance health benefits, or find out there is a warrant for their arrest - or worse yet, when they are convicted of a crime committed by their impostor.Victims have a great burden to "prove" their innocence, beg for an identity theft report, and spend hundreds of hours calling and writing various agencies and companies to get their life back.

The epidemic of identity theft is growing because sensitive personal information is acquired very easily, and the issuers of credit are often less than careful in verifying and authenticating the true identity of the applicant.There are many ways that fraudsters obtain data about us-It may be appropriated by , stolen mail, dumpster-diving, lost or stolen wallets,shoulder surfing,burglary, friends, relatives (only about 9%), unscrupulous employees, phone fraud, internet fraud (phishing and pharming), spy ware, hackers, unprotected wireless networks, unethical use of public documents that contain personal information, needless display ofthe social security numbers on government documents (such as; military and Medicare identification cards,); the transfer and sale and sharing of social security numbers and otherdataamong financial institutions, credit reporting agencies and data brokers.


B. DATA BROKERS FILES PROVIDE MASSIVE, BROAD BASED INFORMATION WHEN ACCESSED BY FRAUDSTERS


Although an identity thief has a choice of simple easy ways to steal your good name, as listed above, your identity is especially vulnerable with regard to the mega data bases held by information brokers who are collecting, storing, sharing, buying, transferring and selling huge amounts of personal and sensitive information in all inclusive profiles without any governmental oversight. (For example it is reported that ChoicePoint has 19 billion files on citizens) Although the credit bureaus also hold vast financial and personal data- and if accessed also reek havoc for victims, (like what happened to me) at least these credit reporting agencies are regulated by the Fair Credit Reporting Act, and there was a way for me to correct my file. ››››››


The very essence of the data broker business is selling a broad range of very private and highly sensitive information which if acquired by a person with criminal intent, provides a complete comprehensive package ready made for total identity-takeover.These data bases contain your personal, professional, social, (possibly criminal) and financial existence.Tapping into your data profile is a fraudster's dream come true.The huge lengthy dossiers provide far more than just a social security number or the limited information that could be accessed from stealing a bank account, your mail, or even your un-shredded trash. Many of these companies have various products for sale which will tell the recipient of the report far more about you than your family or friends know. Most of us have seen our credit reports and know how all embracing they are with regard to our financial profile, but few of us have seen our complete dossier stored and sold the data aggregators. To give you an example of one type of product, I have attached as Exhibit I, a sample AutoTrack report sold by ChoicePoint for you to see how much information may be revealed about you, which also includes the persons in your home, and surrounding neighborhood. It should startle you.


C.VIEWING YOUR VAST PROFILE


When I attended the State Bar Annual Meeting last fall, I visited the exhibit hall and was summoned by one of the Data Brokers to view my profile to see if I wished to purchase this data information service in my law office. All I provided was my name, and instantly 30 pages of private information (including my social security number) appeared on the computer screen. I was shocked and horrified, not only because I felt very violated by all it revealed, but worse yet, by the numerous errors!I asked the salesperson how I could correct the information and was told that I could not correct any information in the file; that this information was not subject to the Fair Credit Reporting Act.Please review this attached sample profile and consider how each category heading is labeled, i.e.:" Possible Social Security Numbers Associated With This Subject; Possible Deeds Transferred; Possible Felony/Probation/ Parole". As a recovered identity theft victim, I was stunned by the prospect that some of those items in my report could have been reported as a result of my impostor's actions, and I was fearful of what could happen to me and my family if this information were to be acquired by someone who wished to do harm. I was reminded ofthe Amy Boyercase a few years ago in which a young man, Liam Youens used an on-line information broker-Docusearch to obtain Amy's social security number, phone number, and work address in order to find her. He then appeared at her office and killed her and then committed suicide. Later in his computer, police found a message he had written about data broker services- "It's actually obscene what you can find out about people on the Internet".


D.DATA BROKERS ARE OPERATING UNDER THE RADAR SCREEN AND ARE INVISIBLE TO MOST CITIZENS


Even with all the publicity about data brokers and recent security breaches, when I have spoken to large audiences in the last month about identity theft, most people still didn't know these companies by name or what they do, or how they gather data or what's in their databases. There is no transparency. In fact, most people tell me that if they had received a security breach letter from Choice Point or Lexis Nexis, they probably would have thrown it out as "junk mail" since they hadn't heard of the company and do not have a business relationship. Many potential victims who received security breach letters have not taken advantage of Lexis Nexis' offer for a year of credit monitoring (for example) because they didn't even open the envelope, or if they did, they didn't know what to worry about since they didn't know what was revealed from their files to cause alarm. None of the breach letters that I have seen contained a copy of the profile, or a detailed list of the data that was stolen.


E. EVERYONE IN THIS ROOM AND READING THIS TESTIMONY HAS A PROFILE IN THE DATA BROKER FILES.


DO YOU KNOW WHAT INFORMATION ABOUT YOU IS BEING SOLD?


Everyone in this room who has a birth certificate, a driver's license, if you've been married, divorced, have auto or homeowner's insurance, if you have ever worked, if you have a residence, if you have any government approved license, if you've been issued a speeding ticket- YOU ARE IN THOSE SECRETFILES.Every Senator in this room - and every one watching this hearing has a profile in those files. Have you seen your dossier? Do you know what fact or fiction is being sold about you? As the law stands now- you don't have the right to know what is in those files, nor do you have the right to correct the many errors, nor do you have the right to know who has had access to those sensitive files, nor can you limit their sale- actually none of us here (except perhaps the Data Broker persons) have control over anything in those files. These companies have operated in the shadows and have sold this often erroneous information to myriad companies, journalists and governmental agencies. Yet most Americans don't even know who these companies are or what they do. This is America- the home of freedom and liberty, this is not a communist country or Nazi regime where secret files are kept on citizens- and shared with various entities and governmental agencies. The FBI and other law enforcement agencies are purchasing this information from Data Brokers, so are employers, insurers, landlords, attorneys, private investigators, and others- shouldn't law abiding citizens have a right to at least see the dossiers and make sure that the information is correct?


Although the credit reporting agencies are also considered data brokers, they are regulated by the Fair Credit Reporting Act and that law gives us the right to see our data, review it, dispute it, correct it, find out who has accessed it, limit its sale and review, and give us the right to enforce our rights.Unfortunately, the Information Service industry only acknowledges that a small portion of its products apply to the FCRA (i.e.: reports made for insurance, employment history, landlord tenant history, medical insurance). Why shouldn't the data brokers be subject to the same fair information principles?


III. WHAT ARE SOME REAL LIFE EXAMPLES OF IDENTITY THEFT AS THEY RELATE TO INFORMATION BROKERS?


A.EXAMPLES OF FINANCIAL IDENTITY THEFT:


1.John is a recent widower. After his wifedied of cancer at age 35,(leaving him with three young children,) he beganreceiving collection calls from credit card companies, a computer manufacturer, and a cell phone company for the items and services allegedly purchased by his deceased wife after her funeral.He suspects that the imposter got the information from the death certificate which has the social security number and birth date on the document.This could have been obtained in the funeral home, from public records off line or on line, through the social security administration, or from any information broker.


Many public records including birth certificates, death certificates, marriages, pilot and captain licenses etc. contain the social security number - which is the key to the kingdom of identity theft. The Data Brokers sell public records to almost anyone.John became a victim prior to July 2003 when the California Security Breach disclosure law became effective. If he were a victim of a security breach after July 2003, he hopefully would have been notified, and would have had a chance to put up barriers to protect his deceased wife's good name and his finances.


2. Sidney, a wealthy retired executive learned that his identity was stolen many months after he and his wife purchased a new home. His loan application, with his 3 in one credit report attached, revealed his credit score, his checking, savings, and investment accounts, social security number, and all necessary information for an impostor to become Sidney. He believes his masquerader had gotten a copy of SidneyŪs credit report which was on his broker's laptop.The impostor opened new credit card accounts, purchased computers, electronic equipment, furniture, rented an apartment, obtained utilities, etc, stealing almost $100,000, and the couple are overwhelmed.


Allowing employees to download credit reports and maintain loan applications in unencrypted files on laptops which may be easily stolen outside a secured office, makes customers very vulnerable to identity theft.It is imperative that all companies that collect data and transfer it for use, verify the recipient (that he or she has a lawful, permissible purpose), set up contracts and enforcement for the security of the information.It's critical for victims to get notice immediately of any security breach, so that they may take steps to intervene and stop further fraud activities.


3. Susan, a physician received a letter from a company that she did business with, that her social security number and other information about her had been acquired by unauthorized persons.She was terrified as to what could happen to her finances, and her practice.She put fraud alerts on her credit profile, changed all her passwords, even closed accounts and opened new ones. She felt very violated, angry, frightened and upset.Almost 1á years later, she started receiving calls from creditors from accounts she never owned - including cell phones, credit cards, and loans. She believed the fraud alert would remain on her credit profile - it did not. Even when the fraud alert was on her file, companies seemed to ignore the alert and issue credit.Since she lives in California, she was able to place a security freeze on her profile so no one could see her credit report to issue credit without her providing a password to release her file.Now she has sleepless nights about her impostor parading as a doctor and committing other crimes. She wants to see a full background check from the information brokers.


This case shows us why it is so important to receive notice of a security breach. Susan took proactive steps to prevent fraud, and several companies called her and did not issue credit.Some negligent companies ignored the alert. Because she lives in one of the four states (presently California, Texas, Vermont, and Louisiana) that allow victims to "freeze" their reports, she was finally able to stop the financial fraud. But the fear of criminal identity theft is now haunting her. She should be able toput a fraud alert on her consumer profile and obtain a complete background check at no cost if she is a victim- just as victims can obtain two free credit reports in the 12 months in which they learnedof the fraud.She should also be able to limit the sale of her consumer report and be notified with the name, telephone number and address of a business or governmental entity (other than Homeland Security) to see who is accessing her profile.


B›› Examples of Criminal Identity Theft

1. George, a disabled veteran living in Colorado was suddenly denied his disability payments, and hit with a large IRS bill for the income that his impostor had earned while working under his name in Tennessee.Upon reporting this fraud to the police, we learned that GeorgeŪs impostor had also established a criminal record in yet another state and there was a warrant for GeorgeŪs arrest.

George's information about his impostor's criminal activity and work related fraud would not show up on a credit report (until the IRS reports it), but it would show up on a background check provided by the Data Brokers who are testifying today.George found out the hard way, when he lost benefits and was arrested. If he had access to his consumer file, he would have found out about the fraud and wouldn't have lost his disability benefits.

George's case demonstrates why must be able to review, dispute and correct our consumer files. We should be able to get our complete dossiers at least once a year at no cost as is our right un to get a credit report from each of the three credit reporting agencies under the Fair and Accurate Credit Transactions Act.

2.Lori, a disabled vet from Virginia, and single mom with a set of six year old twins was attending to school to get her Master's degree in Social Work, when the police showed up at her door.She was arrested for a crime that she didn't commit. The woman who committed the fraud used the name Laura along with Lori's last name. Her fingerprints did not match the prints of the perpetrator, and the description of the fraudster was different from Lori, yet she was convicted. With my help and the help of new counsel, she was sentenced to probation- but the felony record must be corrected with a new trial. Her greatest fear isn't the new trial- it is the information broker data bases that may continue to report her as a felon even after the criminal records are cleared.She has reason to fear as you will read in the next case.

3. Scott was laid off from a high paying job in the medical industry in Ohio.He had great recommendations and felt sure he would be rehired.For two years he was denied employment after several positive interviews and his permission to do a background check. Finally Scott hired a private investigator who showed him his criminal profile from a data broker.It included two DUIs and an arrest for murder.None of which belonged to him. I spent many months helping him to correct the sheriff and FBI databases.But months after we cleared all the law enforcement databases, he applied for employment and was offered the job, but after reviewing his background, he was told that they couldn't hire him. He was in shock when the private investigator pulled his report again and found that a major information broker was still selling this false information to prospective employers without updating their files. Finally after a lawsuit was filed by an Ohio attorney, the information was corrected. But the years of anguish and lack of employment continues to damage his career and his personal life.

Scott had no idea why he had trouble getting a job. Although a potential employer is supposed to tell you if you are denied employment due to a consumer report, and let you know how to review the report, it's understandable that an employer may be reticent to tell a "murderer" that he is denied employment due to his criminal history. Instead he was told that there were others who were more suitable for the position. If Scott had the right to see his file earlier and had the right to correct it, he would have been able to secure employment and perhaps not have divorced, lost custody of his son, nor become homeless for those years.

C.Examples of Identity Theft for Revenge

1. Linda was married to a prominent Chicago lawyer for 25 years. When he decided to divorce to marry his secretary, he had a friend download Linda's consumer information and give it to a fraudster who applied for numerous credit cards, ordered furniture, and other luxury items. The fraudster also used Linda's name to set up e-mail accounts to send the estranged husband threatening messages. This was done to discredit Linda in court.

Obviously, there was no lawful purpose for downloading this report from the data broker.There was no verification of permissive use by the data broker. It clearly was revenge and self interest.››

2.The first cyber stalking case prosecuted in Orange County, California turned out to be identity theft.A computer expert was angry when a woman he liked shunned his advances.He proceeded to go online to a chat room and pretend to be her- stating that she had fantasies of being raped. From a data broker, he was able to find her home phone number and address and shared it in the chatroom.The woman didnŪt even own a computer.When several men appeared at her door to share her fantasies, she was terrified and called the police. She had an emotional breakdown and the violation has left scars.

3.A radio talk show host was shocked to learn that his own identity was stolen by a disgruntled listener who bought his dossier from an on-line information broker.Aside from calling him at home and bullying him, he obtained access to his e-mail account and sent embarrassing e-mails to the station, pretending to be the talk show host.

The above cases demonstrate how identity theft is facilitated by the data broker industry. Unless a victim gets notice of a security breach or unless law enforcement or a private investigator can solve the mystery, most victims don't have a clue how the criminal has gotten his sensitive records.The assaults against these victims caused great anguish, overwhelmed them and negatively impacted every aspect of their lives.The time spent trying to regain their lives, the damage to their reputation, and the out-of-pocket costs were miniscule compared with the tremendous emotional turmoil these people endured.

IV. WHAT IS THE IMPACT OF SECURITY BREACHES ON CITIZENS WHOSE INFORMATION IS STOLEN?

Persons whose information has been stolen by criminals are victims of a crime.They may not yet be victims of identity theft- yet they are victims of a federal crime. Not only has their private, sensitive information gotten into the hands of unauthorized persons- but those unauthorized persons have done so with the intent to commit an unlawful act. Under 18 USC 1028 as stated below the persons committing the act are felons and those who are adversely affected are victims of a federal felony:

The Identity Theft and Assumption Deterrence Act of 1998 (Identity Theft Act) 18 U.S.C. Ŗ 1028) makes it a federal crime when anyone:

knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law.

I have personally spoken with victims of security breaches who have received notice letters from entities such Lexis Nexis, ChoicePoint, Ameritrade, Bank of America, Wells Fargo and several universities, hospitals, and even smaller businesses.The victims of the breach feel very violated, angry, frightened and overwhelmed and helpless.It is well known that criminals steal the information and may often wait months or years to use it- or they sell it in exchange for methamphetamine or money.It may be transferred several times and used for financial gain or to commit other crimes. Because the victims of the breach don't know who the criminals are or their intent, they are anxious.Additionally, the victims are not notified as to exactly what information may have been taken, so they feel defenseless and don't even know what to protect.Although I tell these victims actions to take to put up barriers (placing fraud alerts, instituting security freezes, changing passwords, changing mother's maiden name, monitor credit reports, etc) victims still feel incapable of insuring that their identity won't be stolen.Many are fearful that their family home or office may be intruded by the perpetrators who may have their addresses, phone numbers, bank account information and perhaps an entire dossier.

Below are a couple of e-mails I received from victims of a security breach explaining their strong feelings of victimization.

"My husband and I are very upset and it is overwhelming.We are very anxious and it takes a tremendous amount of time and effort just to get a security freeze. The credit agencies shouldn't make it so difficult. I'm spending so much time monitoring accounts and credit reports- it's exhausting- I feel very vulnerable and frightened that some criminal knows all about me and may wait to use our stuff any time, now or in the future- what can I do?"

"I spend sleepless nights wondering when the phone may ring, or I will open a letter from a bill collector.I'm worrying if someone has obtained new identification under my wife's or my name. It is scary to think that I may be pulled over by the police for something I didn't do.What if they drag me or Lord forbid MY WIFE from the vehicle and handcuff us. My wife and I are losing too much sleep"

The emotional impact on these victims is intense and their fears are real. Why would a criminal steal the information if there was no intent to sell, transfer or use it for an unlawful purpose?

V. WHAT NEEDS TO BE DONE WITH REGARD TO MINIMIZING THE RISKS OF IDENTITY THEFT AS TO INFORMATION BROKERS?


Data Brokers must be regulated by imposing Fair Information Practices as follows:

1. TRANSPARENCY-The nature of personal data held by these companies should be readily available for inspection by the public.The uses of the information should be clearly defined.

2. CONSENT AND NOTICE-Consumers should be able to give their consent to the disclosure of their information prior to disclosure, such as the rights with regard to disclosure of credit reports. The exceptions would be for defined categories of law enforcement and Homeland Security.››› In other words there should be an established permissible purpose; i.e. - employment background checks, insurance, landlord tenant, etc.When a consumer gives his consent or it is considered a "permissible purpose", the consumer should be entitled to notice of the sale, and the consumer should receive a free copy from the entity that bought the report.

3. CONSUMER ACCESS AND INSPECTION- Individuals should have the right to one free disclosure per year as they have for credit reports. A central website and toll free numbers should be set up for consumers to get their entire profile- not just a "Clue Report".If a person has become a victim of identity theft, he should be entitled to at least one other free disclosure per year for 24 months after learning of the stolen identity. The inspection report should be the same as would be accessed by a company for a background check-the complete profile. The Disclosure should also provide a list of names addresses and phone numbers of all entities that received a copy of such report in the last 5 years.This would include governmental entities except for specific guidelines of Homeland Security or other law enforcement restrictions. Employers or others who order background checks on a consumer should be required to provide a copy to the consumer upon receipt whether or not the consumer report was a factor in hiring or reviewing an employee or prospective employee.

4.QUALITY CONTROLS AND TIMELY CORRECTION- The information collected should be accurate, complete, updated and relevant to the purpose for which it is to be used. The Data Broker industry should allow individuals to dispute and provide prompt correction of the files within no more than 30 days. The broker should reinvestigate without cost to the consumer and make all appropriate changes if the information cannot be verified.If after the data broker investigates, it finds that the investigation verified the information, the company shall provide the name, address and phone number of the verifying entity so that the consumer can directly dispute the information.

5. STRICT SECURITY CONTROLS- There should be safeguards against risk of loss, unauthorized access, alteration, hacking, etc. Audit trails and limited access should be standard as well as encryption of the sensitive data.Customers should be screened both initially and with respect to how the end user is safeguarding the information from unlawful use. In the event of a security breach, the data broker must notify all individuals whose information was acquired either on paperor electronically with a letter providing the consumer the nature of the breach, what information was stolen, how toprotect themselves with fraud alerts, security freezes and other useful tools. They should also provide a free copy of the report that was accessed. Credit monitoring and a background check monitoring would be needed. (Fraud resolution services may be necessary.)

6. ENFORCEMENT- The data broker industry must be held accountable to consumers and victims. Outside audits and training should be mandatory.A private right of action is essential to allow enforcement of the provisions of the law.A private right of action provides that the cost of the legal system policing against acts of preventable corporate negligence is paid by the guilty parties rather than by increasing taxes or adding to the size of government. We have seen that many provisions of FACTA and the GLB Act have not been enforced because federal agencies do not have the resources or manpower to take actions against all the violations, and why should our taxes be spent to right the wrongs of companies who violate the law.Individuals should be able to seek redress for their damages without having to rely on the government to intervene, however for large cases, enforcement should be available in state courts by private parties, attorney generals and the FTC.

7.PRESERVING STATES RIGHTS- Consumer reforms with regard to identity theft have derived from proactive States that were responsive to the plight of its citizens.Some examples of this are the right to a free credit report, annually, the right to place a fraud alert, the right of victims to obtain information from businesses and creditors to regain their identity.More recently we have found out about the security breaches of two of the data brokers here today only because of the California Security Breach law.Both ChoicePoint and Lexis Nexis admitted in a senate hearing that they both experienced significant breaches prior to July 2003 when the California law became effective, and did not notify any of the victims of the breach.›› Since February 2005, over 4 million Americans have been victims of various security breaches (See exhibit II from the Wall Street Journal) - none of which we would have heard about, but for the California law.›› Arizona and California were the first two states to make identity theft a crime- leading all the states and the federal government to establish the consumer as a true victim.Numerous states are instituting security freezes to lock up a consumer's credit so fraud cannot continue.Federal law should serve as a floor, not a ceiling, so that states can if need be quickly address the crises of their victims.

VI. WHAT ELSE IS NEEDED TO PREVENT AND RESOLVE IDENTITY THEFT?

1. Security Breach Notification must extend to all states. All governmental agencies, and private industry, schools, and other entities should be held accountable to quickly notify all persons whose sensitive and personal information (paper and electronic files) were acquired by an unauthorized person.There should be an exception for encryption only if it is robust and if the unauthorized acquisition was not capable of being decrypted by an unscrupulous employee or customer. The standard of providing notice should be triggered by the acquisition of the data rather than the use of it.A bank or other entity who experiences a breach should not be allowed to determine the possibility of the mis-use. The only delay of notice would be for law enforcement upon its written request.›››› Allowing the business or entity to make the call as to when there might be a risk of harm is like allowing the wolf to tend the henhouse.There should be enforcement by the FTC, state attorney generals and private individuals.Any preemption should be a floor and not a ceiling so that states can protect their own citizens regarding unique needs. As a member of the advisory board of the California Office Of Privacy Protection, we created a list of "Recommended Practices on Notification of Security Breaches Involving Personal Information" as a guide for dealing with security breaches, please visit www.privacy.ca.gov to review those standards.

2. Governmental agencies as well as private industry should limit the use of the social security number since it is presently the key to kingdom of financial fraud.

Our advisory board to the Office of Privacy Protection in the California Office of Consumer Affairs also had the privilege of developing the žRecommended Practices for Protecting the Confidentiality of Social Security NumbersÓ (www.privacy.ca.gov). This document should be considered by both pubic and private sector entities as a guide to protect all consumers.

The social security number is used as the identifier for military cards and "dog-tags", Medicare, Medicaid, pilot's licenses, captain's licenses, etc.No entity should be allowed to display, post, or sell the SSN. The SSN in public records should be redacted before posting. There should be no collection of SSNs by private or governmental agencies except where necessary for a transaction and there is no other reasonable alternative.SSNs collected for a specified purpose should not be used for any other purpose.

3. Mandatory Destruction of Confidential Information-Governmental Agencies and Private Industry should be required to completely destroy personal information that they are discarding by shredding, burning or whatever means is necessary to protect the information from dumpster diving.This should extend to any confidential and sensitive information- not just information derived from consumer reports.

4. Departments of Motor Vehicle Licensing- Bureaus should establish more stringent monitoring and matching of duplicate licensing and new licenses.A photo ID and a fingerprint could be matched.Rather than developing a žnational IDÓ with various forms of biometric information, credit cards and other unnecessary information which would complicate the process and invade privacy, this license would behelp deter interstate identity theft without collecting too much information nor allow it to be accessedorsold to private industry.

5.Need for an Easier Process for Victims- Problems with the Fair and Accurate Credit Transactions Act (which was meant make things easier for victims.)

a.›› An Identity Theft Report is needed in order for victims to get an extended fraud alert, block the fraud on their profile, and gain access to records of the fraud. FACTA was meant to streamline and help victims of identity theft. However the new rules recently released by the FTC with regard to the "Identity Theft Report" clearly show the time-consuming maze that a victim must maneuver. Below is an example of the hassle of exerting your victim rights with regard FTC rule about the "Identity Theft Report."

"An Identity Theft Report may have two parts:

Part One
is a copy of a report filed with a local, state, or federal law enforcement agency, like your local police department, your State Attorney General, the FBI, the U.S. Secret Service, the FTC, and the U.S. Postal Inspection Service. There is no federal law requiring a federal agency to take a report about identity theft; however, some state laws require local police departments to take reports. When you file a report, provide as much information as you can about the crime, including anything you know about the dates of the identity theft, the fraudulent accounts opened and the alleged identity thief.

Note: Knowingly submitting false information could subject you to criminal prosecution for perjury.

Part Two of an identity theft report (depends on the policies of the consumer reporting company and the information provider) (the business that sent the information to the consumer reporting company). That is, they may ask you to provide information or documentation in addition to that included in the law enforcement report which is reasonably intended to verify your identity theft. They must make their request within 15 days of receiving your law enforcement report, or, if you already obtained an extended fraud alert on your credit report, the date you submit your request to the credit reporting company for information blocking. The consumer reporting company and information provider then have 15 more days to work with you to make sure your identity theft report contains everything they need. They are entitled to take five days to review any information you give them. For example, if you give them information 11 days after they request it, they do not have to make a final decision until 16 days after they asked you for that information. If you give them any information after the 15-day deadline, they can reject your identity theft report as incomplete; you will have to resubmit your identity theft report with the correct information:" (FTC Rules)

This rule is not only cumbersome it is confusing and allows the credit reporting agencies to delay unnecessarily and it gives victims a run around.I have already heard from many victims who are frustrated, angry, and unable to block the fraud or even extend the fraud alert.

b. Law enforcement agencies at the local, state and federal level should develop a uniform "identity theft report" to be compliant with FACTA.-and the FTC should determine what satisfies an "identity theft report." New provisions of the Fair Credit Reporting Act require a detailed "identity theft report" to send to the credit grantors, and the credit reporting agencies. If a proper identity theft report is sent to the credit reporting agencies they are required to do the following: place an extended fraud alert for 7 years, block all the fraud on the profile immediately; notify the creditor that the accounts are blocked.Additionally, if the victim provides a proper identity theft report to the creditors, they must provide all documentation of the fraud to the victim and to the law enforcement agency within thirty days.Unfortunately, the agencies themselves are deciding what is "proper" and many victims contacted us because they are not able to appease the credit reporting agencies nor the credit grantors with the reports. So they cannot exert these rights afforded under the law and there is no private right of action to enforce these rights.

The FTC should determine what will be acceptable as an identity theft report and facilitate the victim's report. It should be adhered to by law enforcement as well as the financial industry without imposing an arduous task upon the victim.Also, the victim should be able to get a police report in the jurisdiction where she lives even if the impostor is in another state.And, the case should be able to be prosecuted in the jurisdiction where the victim lives or the jurisdiction where the crime takes place.All police should be required to provide a proper identity theft report even if they do not have the resources to investigate the crime.

c.Initial Fraud alert should be one year-FACTA allows a victim of a breach or fraud to place a fraud alert on credit profiles for at least 90 days with their first phone call. To extend the alert they must write a letter and provide an "identity theft report.The initial fraud alert should be changed to at least 1 year especially because victims of a security breach may not be victimized for a long time.

d. Free credit report for victim should be available by phone when calling in the fraud alert.Prior to the passage of FACTA, victims could order their free credit report to review their files at the same time they place a fraud alert. Now, the credit reporting agencies (except for TransUnion "temporarily") do not give the victim an opportunity to get the free credit reports in the initial phone notification of the fraud. They are later sent a letter notifying of their right to a free report upon request. This is another delay which allows the impostor more time to do his "dirty work" and this is an added burden for victim and costlier for the creditor. The victim should be allowed to order the first of his two free reports during the initial fraud alert phone call.

e. Victims should be provided a complete report instead upon disputing the fraud and the victim should be able to see the report that the creditors see.The CRAs are now sending corrections instead of complete corrected reports to victims. This is dangerous since other new fraud may appear on the report. Also - the report that a creditor receives is more comprehensive than the report that the victim sees, so this is not complete disclosure.

6.Funding for law enforcement for identity theft cases should be greatly increased since this is also a Homeland Security Issue.All major metropolitan areas should be funded to set up identity theft task forces to include the Secret Service, the Postal Inspector, the Social Security Inspector, the FBI, INS, State Attorney General and local law enforcement to collaborate in the investigation and prosecution of these crimes since suspected terrorists will need to utilize stolen identities to attempttheir missions.

7.Law enforcement agencies should help victims of criminal identity theft.›› A federal law should set forth steps for law enforcement to take (in conjunction with the judicial system) to assist victims of criminal identity theft.So a victim of criminal identity theft in California whose impostor is in New York could be declared innocent in New York as well as California. This would entail a national database of the criminal information and fingerprints.It would contain the order of the true personŪs fingerprints for comparison with the fingerprints of the impostor-criminal in›› New York.The court would enter a declaration of factual innocence and any warrants for the victim would be dismissed.All databases would be corrected so that background checks would not show the victim as having an arrest or criminal record. (See California law and package for victims to clear their criminal record www.privacy.ca.gov)

8. Set up State and Federal Offices for Privacy Protection- There should be a federal office of privacy protection as well as state offices.The office of privacy protection should institute an ombudsmen office to assist citizens with identity theft and other serious privacy issues. It should also coordinate and review the various governmental offices of privacy to ensure oversight.

9. Credit Reporting Agencies:

a. Consumers should be able to put a complete freeze on their credit reports in order to prevent identity theft. This would enable the consumer to prevent their credit report from being accessed by a creditor without the specific authorization of release with a password.California, Texas, Vermont and Louisiana have passed such laws.It would be impossible for an impostor to apply for credit if there were a freeze on the file. The consumer would have the right to release the file when he so desires by a password or pin number. Every state should pass this legislation or if it is federal legislation, then there needs to be a private right of action and no federal preemption.

b. Credit reporting agencies should provide to victims a COMPLETE REPORT when providing corrections.All reports should include the names, addresses and phone numbers of the companies who accessed the consumerŪs credit report including inquiries with the issuance of a consumer report so that potential victims could verify the permissible purpose.

c.›› Credit reporting agencies should notify a consumer by e-mail when his/her credit report has been accessed.The agency should be allowed to charge a minimal fee for this service- as to actual cost (i.e.: $10 per year),

d. Credit reporting agencies should set up hotlines with live persons to talk to victims of identity theft.›› A live employee in the fraud department should be assigned to a particular victim- so the victim doesn't have to re-explain all the problems in numerous letters.

10.Banks and other Creditors should be held accountable for protecting consumers and others from identity theft.

a. Creditors who issue credit to an impostor after a fraud alert is placed on a credit profile, should be held liable and the victim should have a private right of action to enforce his rights. Presently if a creditor ignores the fraud alert, only the Federal Trade Commission or other federal agencies may bring and action and they clearly cannot enforce individual rights nor do they have the resources to deal with most of the violations.There should be a fixed penalty of at least $1000 per occurrence or actual damages which ever is greater.

b. Need for private Enforcement of access to business records. If a fraud victim provides notification of fraud and includes an "identity theft report" and an affidavit, under the FCRA, a creditor should is required within 30 days to provide copies of all billing statements, applications and other documents of fraud to the victim and the designated law enforcement agency.Presently victims are contacting us that many companies are refusing to provide the information without a subpoena.Victims presently have no private right to force a company to provide this data.Only the FTC or other federal agencies may bring an action-but it cannot help an individual consumer.This must be changed so that there will be enforcement of the provision of the act.

c. Creditors should not be allowed to send žconvenience checksÓ without a prior request by the consumer. I was told by a postal inspector that 35% of these checks are used fraudulently

d. Credit grantors should not be allowed to send pre-approved offers of credit without a PRIOR the request of the consumer.

Identity Theft Conclusions

Personal, confidential, and financial information is a valued commodity in our society. Data brokers have flourished abundantly while selling and transferring your extensive, aggregated personal profiles which include your income, credit worthiness, buying, spending, traveling habits, heath information, age, gender, race, etc.›› Facts about our personal and financial lives are shared legally and illegally without our knowledge or consent Ů on-line and off-line everyday.Privacy protection in the age of data collection is really more about limiting access and instituting inspection and correction to our records, rather than keeping the information secret. We have lost control over the dissemination of our sensitive data, and this had led to enormous epidemic of identity theft.›› The huge data breaches in recent months have shined the light on the immensity of the problem of identity thieves and the havoc they cause. But it also has enlightened our lawmakers to collaborate to create a new framework for reasonable regulation of the data broker industry.

To avert identity theft, the burden is on the data brokers, and the financial industry who are in the unique position on the front end, to take precautions, require verification, and authentication of employees, vendors, business associates and customers, and refuse to sidestep fair information principles. Data Brokers, the credit reporting agencies and the financial industry is in a powerful position to prevent the fraud before the impostor can establish a parallel žshadow profileÓ.

I am hopeful that as a result of the gigantic breaches of sensitive information, that this Congress will create a regulatory framework for the information brokers that will protect our citizens and enable the Data Broker industry to help society.I encourage you to strongly consider the thoughtful and well reasoned language of S 500 which implements the Fair Information Principles, yet acknowledges the importance the work that the data industry provides, while safeguarding the identity of every American.››

Thank you for the opportunity to share these concerns and suggestions with this Honorable Committee.››› -Mari J. Frank, Esq.

Exhibit I

SAMPLE AUTO TRACK DATA ON FICTITIOUS PERSON FROM CHOICE POINT

National Comprehensive Report Plus Associates

Compiled on 01/05/2002 at 3:39PM

Reference: 123456

ZACHARY K THUL DOB: JAN 1955

SSN 960-45-XXXX issued in New York between 1968 and 1970

Possible AKAŪs for Subject

THUL, ZACK K SSN: 960-45-XXXX

Possible Other Social Security Numbers Associated with Subject

THUL, ZACHARY K SSN: 690-45-XXXX

THUL, ZACHARY K SSN: 690-45-XXXX

** ALERT** A Death claim was filed for SSN 690-45-XXXX in FEB 1962.

Possible Other Records/Names Associated with Social Security Numbers

KIRBY, LOARDA SSN: 983-16-XXXX

KIRBY, LORADA SSN: 960-45-XXXX

Possible Driver Licenses

THUL, ZACHARY K

DL: T432117680470 issued in Ohio on 12/19/1996 expires 02/07/2001

DOB: 01/17/1955 Height: 5'08"

7891 W FLAGLER ST MIAMI, OH 38972

Possible Addresses Associated with Subject

SEP-1997/DEC-2000 -7891 W FLAGLER ST

MIAMI, OH 38972

JUN-1995/AUG-1997 -15 ROBY AVE (555) 123-4567

HAMPTON BAYS, NY 11238

JUN-1996/JUN-1996 -1400 35TH ST K 4I

SPRINGFIELD, FL 34090

MAY-1995/MAY-1995 -4833 STORM ST APT 33

SPRINGFIELD, OH 34443

JUL-1994/JUN-1996 -4833 STORM ST I33

SPRINGFIELD, OH 34443

SEP-1994/JUL-1995 -305 WAYBREEZE BLVD

COLUMBUS, OH 34209

DEC-1992/APR-1995 -70 REARVIEW DR

RIVERBEND, NY 11903

-438 BULLSIDE TER W

HACKENSACK, NJ 09348

The following is a sample National

Comprehensive Report SM Plus Associates.

The amount and type of records identified

in a report will vary from subject to subject. All names and other information are fictional and are for illustrative purposes only. Any resemblance to real persons or public record information is unintentional. Some National Comprehensive Reports SM may locate a partial date of birth. Frequently, subjects of a National Comprehensive Report SM will be linked to other names because two public records reference two different names, but only one social security number. The most common reasons for these occurrences are:

1. Typographical errors

2. Jointly filed public records

which list both the subject and

the second name

3. Father and son who have the

same name

4. Fraudulent use of a social security number The dates represent the approximate time period when the linked address appeared on a publicly available record document for the subject. The subject may or may not have resided at any of the addresses. Some public records link the subject to an address without noting a date

range. Addresses without date ranges will appear at the bottom of the address list. Such an address may be current or historical. Underlined Items provide a Link to record details.

2

Phone Listings for Subject's Addresses

1400 35TH ST W SPRINGFIELD, FL 34090

Over 100 phone numbers found, only same last name considered.

4833 STORM ST SPRINGFIELD, OH 34443

ACME RENTALS (555) 555-1935

305 WAYBREEZE BLVD COLUMBUS, OH 34209

THUL ZACHARY (555) 498-5525

Possible Real Property Ownership

4833 STORM ST SPRINGFIELD, OH 34443

Ohio Assessment Record - County of: CLARK

Owner Name: THUL, ZACHARY

Parcel Number: 998-8748-9448

Short Legal Desc: STORM ST IR PT LOT 7& ADK J S BUCKINGHAM AM EST

Property Type: SINGLE FAMILY

Recorded Date:

Situs Address: 4833 STORM ST I 33

SPRINGFIELD, OH 34443

Mailing Address: 7891 W FLAGLER ST

MIAMI, OH 38972

Assessment Year: 1995 Tax Year: 1997

Assessed Land Value: Market Land Value: $366,800

Assessed Improvements: Market Improvements: $192,000

Total Assessed Value: Total Market Value: $558,800

Most Recent Sale: $305,000 Prior Sale Price:

A manual search of Real Property using the name THUL ZACHARY K is recommended. 4 additional

property records exist (including historicals) but are not included, as they do not match all necessary

criteria.

Possible Deed Transfers

305 WAYBREEZE BLVD COLUMBUS OH 34209

Ohio Deed Transfer Records - County of: FRANKLIN

Parcel Number: T545663

Legal Desc: LT 56 BLK 87 PB 14/38

Sale Price: $84,000 Loan Amount: $67,200

Contract Date: 8/14/1995

Lender: LIBERTY SAV BK

Situs Addr: 305 WAYBREEZE BLVD

COLUMBUS, OH 34209

Seller(s): THUL, ZACHARY K

Buyer(s): SMITH, BART O

Possible Vehicles Registered at Subject's Addresses

1400 35th ST K 4I SPRINGFIELD, FL 34090

Plate: K387KJ State: NY Date Registered: 08/14/1995 Expire Date: 08/29/2000

Title: 76174678 Title Date: 10/30/1998

OWNER: ZACHARY K THUL

Color: WHITE

This message probably indicates that a multi-unit building islocated at this address.

By comparing the list of Possible Addresses Associated with Subject with the listed phone numbers in the Phones module, the report finds phone numbers, which have been listed at the given address. In this report, one property record was found in Real PropertySM which matched the subjectŪs name and address and the properties situs address. This message indicates that additional records in Real PropertySM

match the subjectŪs name, but none of these records had a situs address that matched an address found at the top of the report. These additional properties may belong to the subject or may simply belong to someone with the same name. Search Real PropertySM by name for a complete list of possible properties. A list of states and counties for which AUTOTRACK XP SM has deed transfer records can be located by choosing the Help link from the blue AUTOTRACK XP SM navigation bar at the top of the screen. The property information returned from this database

may differ from the information found in Real PropertySM. (See the above note on Possible Property Ownership.)A list of states for which AUTOTRACKXP SM has

vehicle registration records can be located by choosing the Help link from the blue

AUTOTRACKXP SM navigation bar at the top of the screen. Underlined items provide a link to record details.

3

1999 DODGE GRAND CARAVAN SE

DODGE GRAND CARAVAN SE Ů 3.3L V6 SOHC FLEXFUE

VIN: 2B5CD3595EK253648

MINIVAN

Plate: ID036H State: FL Date Registered: 04/28/1999 Expire Date: 10/30/2000

Title: 77465960 Title Date: 09/29/1998

OWNER: ZACHARY K THUL

Color: RED

1997 CHEVROLET S10 PICKUP

CHEVROLET S10 PICKUP Ů 2.2L L4 EFI OHV 8V

VIN: 1GCCS144X8144822

PICKUP

Possible Watercraft

Owner: THUL ZACHARY

Address: 70 REARVIEW DR

RIVERBEND, NY 11903

Year: 1988 Length: 41.9' MFG:

Reg Number: K989495 State Registered: NY

Hull Const.: FIBERGLASS

Hull Number:

Use: PLEASURE

Propulsion: INBOARD

Fuel: GASOLINE

Possible FAA Aircraft Registrations

Owner: THUL ZACHARY K

Year: 1957

Make: PIPER

Model: PA-22

N-Number: N0225J

Aircraft: FIXED WING SINGLE ENGINE

Address: 4833 STORM ST I33

SPRINGFIELD, OH 34090

Possible UCC Filings

Original Date: 02/09/1988

Action: INITIAL FILING Date: 1988

File State: OHIO

Debtor: ZACHARY THUL

Address: 305 WAYBREEZE BLVD

COLUMBUS OH 34209

Secured Party: HOME SAVINGS & LOAN ASSOC

AKRON OH

Possible Bankruptcies, Liens and Judgments

Court Location: EASTERN DISTRICT OF OHIO - FRANKLIN

Filing Type: CHAPTER 7 DISCHARGE Filing Date: 08/14/1996

Case Number: 98555555 Release Date:12/18/1996

Creditor/Plaintiff: MARTIN T MARTINSON Amount:

Debtor/Defender: THUYL ZACHARY K

305 WAYBREEZE BLVD SSN: 960-45-XXXX

A list of states for which AUTOTRACKXP SM

has Uniform Commercial Code lien records

can be located by choosing the Help link from

the blue AUTOTRACKXP SM navigation bar at

the top of the screen.

4

COLUMBUS, OH 34209

Attorney: MARTIN T MARTINSON

Possible Professional Licenses

Type: OHIO Professional License

License Type: LICENSED SOCIAL WORKER

Lic. Number: 42389 Status: ACTIVE

Original Date: 01/10/1990

SSN: DOB:

Phone:

Full Name: THUL, ZACHARY K

Address: 4833 STORM ST I33

SPRINGFIELD, OH 34090

County: CLARK

Possible FAA Pilot Licenses

Pilot Name: THUL, ZACHARY K

FAA Class: PRIVATE PILOT

FAA Rating: SINGLE ENGINE LAND

Medical Class: THIRD CLASS-VALID FOR 24 MONTHS

Medical Date: 07/19/98

FAA Region: NORTHWEST/MOUNTAIN - CO, ID, MT, OR, UT, WA, WY

Address: 4833 STORM ST I33

SPRINGFIELD, OH 34090

Possible DEA Controlled Substance Licenses

Business: PRACTITIONER

Name: THUL, ZACHARY K MD Expires: 09/30/1999

Address: 7891 W FLAGLER ST

MIAMI OH 38972

Authorized Drug Schedules: II, II, III, III, IV, V

Possible Business Affiliations

15 ROBY AVE HAMPTON BAYS, OH 11238

STETSON HAULING, INC. OH 2543854

CHAIRMAN ACTIVE

Officer Name Match Only (NOT necessarily affiliated)

Matching Name : THUL ZACHARY K

OLSON FAMILY PROPERTIES & INVESTMENTS, INC. MA 789123

REG AGENT ACTIVE

TOO HOT TO HANDLE FL H76543

SECRETARY INACTIVE

Possible Relatives (* denotes match with one of subject's addresses)

(R- 1) THUL CLAIRE DOB: DEC 1954

SSN 999-15-XXXX issued in New York in 1973

SEP 1994/JUL 1998 - *305 WAYBREEZE BLVD

COLUMBUS, OH 34209

Certain individuals and businesses are required to be registered under the

Controlled Substance Act. Physicians, dentists, and veterinarians are among this

group. For a more complete explanation and definition of the drug schedules,

choose the Help link from the blue AUTOTRACKXP SM navigation bar at the

top of the screen. A list of states for which AUTOTRACK XPSM has corporation

records can be located by choosing the Help link from the blue AUTOTRACK

XP SM navigation bar at the top of the screen. A person will qualify as a possible relative in the National Comprehensive Report Plus Associates SM if he or

she has the subjectŪs last name and has been linked to one or more of the same addresses which appear under Possible Addresses Associated with Subject on page 1.

The asterisks indicate an address match between the possible relative and the

subject of the report (see Possible Addresses Associated with Subject on page 1).

5

JUL 1995/JUL 1995 - *15 ROBY AVE (555) 123-4567

HAMPTON BAYS, NY 11238

OCT 1994/OCT 1996 - 355 LAVERNE AVE

COLUMBUS, OH 34492

DEC 1992/DEC 1996 - *70 LAKEVIEW DR

RIVERHEAD, NY 11901

(R- 2) THUL TOMMY DOB:

DEC 1995/DEC 1996 - 599 MAIN ST

RIVERBEND, NY 11093

APR 1995/AUG 1995 - 355 LAVERNE AVE

COLUMBUS, OH 34492

Other People Who Have Used the Same Address of the Subject

(* denotes match with one of subject's addresses)

15 ROBY AVE HAMPTON BAYS, NY 11238

(O- 1) GENNINE LOWELL

SSN 972-45-XXXX issued in New York between 1966 and 1969

SEP 1993/SEP 1994 - 5 NEWTON AVE

HAMPTON BAYS, NY 12983

- 12 M BAY ST

HAMPTON BAYS, NY 13987

- *15 ROBY AVE

HAMPTON BAYS, NY 11238

305 WAYBREEZE BLVD COLUMBUS, OH 34209

(O- 2) MARIE G SMITH

SSN 991-25-XXXX issued in New Jersey in 1962

SEP 1993/SEP 1994 - *305 WAYBREEZE BLVD

COLUMBUS, OH 34209

AUG 1995/AUG 1996 - 301 BAYSIDE TER

CHARLOTTE, OH 34258

SEP 1993/SEP 1994 - *438 BULLSIDE TER W

HACKENSACK, NJ 09348

Possible Licensed Drivers at Subject's Addresses

7891 W FLAGLER ST MIAMI, OH 33144

THUL, EDWARD H

DL: T600465 issued in Ohio on 07/27/1994 expires 09/11/2000

DOB: 04/19/1969 Height: 5'02"

1400 35TH ST K 4I SPRINGFIELD, FL 34090

**No Drivers Found At This Address**

4833 STORM ST I33 SPRINGFIELD, OH 34443

** 91 Drivers found at this address, only last name considered. **

** No Drivers Found At This Address**

305 WAYBREEZE BLVD COLUMBUS, OH 34209

THUL, STACEY B

DL: T600788 issued in Ohio on 07/24/1994 expires 04/27/2001

DOB: 05/26/1926 Height: 5'04"

Driver License Information is unavailable for the following states: NEW YORK, NEW JERSEY

The report will attempt to locate a brief list of addresses for the possible relative. To

possibly locate more current addresses for the relative, run a report by clicking on the underlined link. A person will qualify

for this category in the National Comprehensive Report SM Plus Associates if he or she has a last name different from the report subjectŪs last name and has been

linked to one or more of the same addresses, which appear under Possible Addresses

Associated with Subject on page 1. A person may be linked to one of the same addresses as the subject, even though he or she has never known the subject. Two people might be linked to the same address but at different time periods. For example, one person could be a former resident of the address where the subject now resides. Multiple address matches with the subject, denoted by multiple asterisks, will identify people who have a greater likelihood of knowing the subject.

This message probably indicates that a multiunit building is located at this address.

6

Neighbor Phone Listings for Subject's Addresses (only first six addresses included)

7891 W FLAGLER ST MIAMI, OH 33144

STATER OFFICE PRODUCTS 7895 W FLAGLER ST (555) 555-0482

BIG ED'S MUFFLER SHOP 7897 W FLAGLER ST (555) 555-3358

BUD'S USED CARS 7900 W FLAGLER ST (555) 555-8288

15 ROBY AVE HAMPTON BAYS, NY 11238

FELLINGHAM MIKE 4 ROBY AVE (555) 555-8697

SCOTT GORDON G 6 ROBY AVE (555) 555-1297

GHERSI JOHN 8 ROBY AVE (555) 555-6819

ELIAS SIMON 9 ROBY AVE (555) 555-2659

SCALCIONE STAN 10 ROBY AVE (555) 555-8425

CANGIANO F P 12 ROBY AVE (555) 555-5217

CORCORAN STEVE 26 ROBY AVE (555) 555-9917

1400 35TH ST K SPRINGFIELD, OH 34443

AHRENDT DAN 1400 35 ST K (555) 555-1664

ALPIN JEFF 1400 35 ST K (555) 555-8117

AMBROSE A 1400 35 ST K (555) 555-7553

APURTON J 1400 35 ST K (555) 555-0735

ARNOLD ROBY 1400 35 ST K (555) 555-4071

BAKER C R 1400 35 ST K (555) 555-8490

BALCHUNAS TERRY 1400 35 ST K (555) 555-5753

BAMBERGER RICHARD 1400 35 ST K (555) 555-8203

The following databases were searched but data for the subject was not found:

ABI Business Directory, Active U.S. Military Personnel, Broward County Felonies/Misdemeanors,

Broward County Traffic Citations, Federal Firearms and Explosives License, Florida Accidents, Florida

Banking and Finance Licenses, Florida Beverage License, Florida Boating Citations, Florida Concealed

Weapon Permits, Florida Day Care Licenses, Florida Department of Education, Florida

Felony/Probation/Parole, Florida Fictitious Name, Florida Handicap Parking Permits, Florida Hotels

and Restaurants, Florida Insurance Agents, Florida Marriages, Florida Money Transmitter Licenses,

Florida Salt Water Product Licenses, Florida Securities Dealers, Florida Sexual Predator, Florida

Tangible Property, Florida Tobacco License, Florida Unclaimed Property, Florida Worker's

Compensation Claims, Marine Radio Licenses, Significant Shareholders, Trademarks / Service Marks,

and state-specific databases.

*** End of Report SS_009/01 ***

Control Numbers: 5661614 - 5661620 - 1BF47FA5975FBA0

EXHIBIT II›››››› THE WALL STREET JOURNAL ONLINE
May 2, 2005

In the last few months, several major companies reported that customer data, including credit-card information, was compromised. The list includes:

COMPANY

DATE ANNOUNCED TO GENERAL PUBLIC

# OF PEOPLE AFFECTED

AFFECTED DATA

SECURITY BREACH

RESPONSE

ChoicePoint -- compiler of consumer data

Feb. 15

About 145,000 consumers had data in the system. At least 750 fraud cases are known.

Addresses, Social Security numbers and credit reports

Thieves posing as legitimate customers bought information.

Informed federal authorities. Will no longer sell sensitive personal data to clients other than governmental agencies, accredited corporate customers or other businesses whose use is driven by a consumer-initiated transaction.

Bank of America -- bank and credit-card company

Feb. 25

Holders of as many as 1.2 million federal-government charge cards

Social Security numbers

Computer backup tapes were lost.

Contacted federal authorities, then consumers.

DSW Shoe Warehouse -- shoestore chain, a unit of Retail Ventures Inc.

March 8

Initially, the theft was said to be limited to about 100,000 customers; a month later, it was raised to 1.4 million

Credit- and debit-card, checking account and driver's license numbers, and personal-shopping information

Hackers stole data from a database for 108 of the chain's 175 stores

Reported to federal authorities. Customers advised to check credit-card statements.

LexisNexis -- consolidator of legal and business information, a division of Reed Elsevier PLC

March 9

Initially, data for as many as 32,000 consumers was at risk. A month later, raised to about 310,000, though only 59 incidents of illegal action are known.

Social Security numbers and driver's license numbers

Unauthorized use of customer logins and passwords.

Informed federal authorities and consumers, improved security, limited customer access to personal data.

Boston College*

March 17

Database included records on 120,000 alumni

Addresses and Social Security numbers

Intruder hacked into a school computer operated by an outside fund-raiser.

Notified affected alumni

Polo Ralph Lauren -- clothing retailer

April 14

As many as 180,000 customers who hold GM-branded MasterCards

Credit-card data

n.a.

Card issuer HSBC notified consumers

Ameritrade -- online discount stock broker

April 19

About 200,000 current and former customers from 2000 to 2003

Varies by customer

Backup computer tape was lost in shipping

Notified affected consumers

Time Warner -- media conglomerate

May 2

About 600,000 current and former U.S. employees back to 1986

Social Security numbers and details on beneficiaries and dependents

Backup computer tape was lost in shipping by an outside data-storage company

Notified those affected

*Other recent university-level securities breaches occurred at California State University-Chico, University of California-Berkeley, Tufts University and Northwestern University.

Sources: WSJ, Associated Press, the companies

Note: Unless where noted, these are cases of data being at risk, not of data being fraudulently used. In all cases the stolen data included the names of the affiliated consumers.

Write to the Online Journal's editors at newseditors@wsj.com