Hackers Hit Experian Credit Reports

M ore than 13,000 credit reports have been stolen from Experian, one of three major credit-reporting agencies, by hackers acting as employees of Ford Credit who used an authorization code to access the reports. Ford and Experian were able to discern the fraudulent credit inquiries because those responsible used a different kind of software than Ford uses to access Experian's files.

Consumers' credit files were accessed and downloaded between April 2001 and February 2002. Victims received a certified letter from Ford last month disclosing their credit reports and personal information had been compromised. The only indication that anything might be amiss was when the reports listed unauthorized credit checks by Ford.

Exactly how the thieves were able to access the information is under FBI investigation.

Richard Power, Editorial Director of the Computer Security Institute, said, "This is not just a credit card number; this is the whole kazoo." Donald Girard, Experian's Director of Public Relations, said, "I've never seen anything of this size before. Privacy is the hallmark of our business, [and Experian is] concerned about ... the trust factor."

The type of complete information contained in credit reports can be used for many purposes, including credit card fraud, which is probably the most frequent type of identity theft. An article in the New York Times recently detailed the plights of two elderly Detroit-area residents who both had their identities stolen; the two crooks stole their information, arranged fraudulent sales or loans and pocketed the proceeds. The two seniors both lost their homes.

Experts estimate that more than 500,000 Americans will be robbed of their identities this year, accounting for an expected $4 billion in stolen funds. Identity theft was the most common type of consumer fraud complaint in 2001, according to U.S. Federal Trade Commission statistics. Hijacking of personal information for fraud or theft generated 85,000 complaints filed with the Federal Trade Commission last year, up sharply from the previous year.

According to the Times, Attorney General John Ashcroft calls identity theft "one of the fastest growing crimes in the United States." Beth Givens, Project Director for the Privacy Rights Clearinghouse, estimates that 500,000 to 700,000 cases are reported annually.