Former Electronic Data Systems Employee Charged with Identity Theft of 498

Technorati Tag:

Date Reported:
8/7/07

Organization:
State of Alabama

Contractor/Consultant:
Electronic Data Systems

Number Affected:
498

Types of Data:
Full identity theft

Breach Description:

A former employee of Electronic Data Systems, Kwantrice M. Thornton was charged with the theft and trafficking in stolen identities of 498 Alabama Medicaid recipients.  The State of Alabama outsources the processing of Medicaid claims to Electronic Data Systems.

Reference URL:

http://birmingham.bizjournals.com/birmingham/stories/2007/08/06/daily11.html?jst=b_ln_hl
http://www.al.com/news/birminghamnews/index.ssf?/base/news/118656103069850.xml&coll=2

Report Credit:
Birmingham Business Journal

Response:
From the online articles listed above:
"Attorney General Troy King annouced the arrest of Kwantrice M. Thornton, 24. The warrant charges Thornton with Medicaid fraud and claims she "obtained the names and identifying information of 498 Alabama Medicaid recipients and subsequently sold 50 of those identities to other individuals to be used in filing fraudulent federal tax returns."

"It is a stark reminder that we are all targets," - Alabama State Attorney General Troy King

Electronic Data Systems is offering all affected persons free credit monitoring and identity theft assistance.

Commentary:

As Troy King states in the article, we certainly are all targets.  Identities are selling for good money.  Miss Thornton faces jail time and fines as a result of this fraud.  Employee fraud is one of the most difficult crimes to protect against because we all have to put a certain amount of trust in our employees.

It is important to note that Electronic Data Systems has a pretty good security record given the amount of sensitive information they handle.

Past Breaches:
None since August 2007

 
Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment