Chase Card Services dumps customer details in landfill

September 8, 2006, 10:01 AM —  Techworld.com — 

In an amazing display of incompetence, Chase Card Services has dumped tapes containing millions of customers' details in a landfill site.

The company will now have to tell 2.6 million current and former credit card customers of Circuit City that tapes containing their details were tossed out when they were mistaken for rubbish. Chase is apparently working with both local and national authorities to find out what happened but thinks they were in a locked box that was crushed and dumped in the landfill hole.

There is no evidence that the tapes or their contents have been accessed or misused, the company said. And CEO Rich Srednicki issued a statement promising that: "The privacy of our customers' personal information is of utmost importance to us, and we take the responsibility to safeguard this information very seriously." Interpretations for what "very seriously" means are open to discussion.

It's not the first time companies and banks have been careless with their customers' data. There have been several other recent instances of lost data tapes and inadequate data care:

-- Iron Mountain, demonstrating vulnerability to data loss a second time, lost tapes in April 2006, relating to 17,000 Long Island Railroad employees and other customers.

-- CitiGroup lost data on 3.9 million customers in June 2005, when tapes being delivered by UPS went missing.

-- A group of US banks had 676,000 customer records stolen in May 2005.

-- Iron Mountain lost a box of backup tapes containing 600,000 current and former Time Warner employees

» posted by abennett

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Sidekick: The Good News & the Bad News
Either way you look at it Microsoft Data Center management did not follow standards or best practices in this failure. In which case it makes me wonder more about the outsourcing of corporate data much less personal data.
- mburton325

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