Bank of America Loses Tapes with Customer Data

Bank of America Corp. confirmed last week that it has lost computer data tapes containing personal information on 1.2 million federal employees, including some members of the U.S. Senate.

The Associated Press is reporting that the lost data includes personal information that could make the customers of a federal government charge card program vulnerable to identity theft, including Social Security numbers and account information. AP says the bank has issued an apology for the incident.

Among the senators whose personal information is on the tapes is Sen. Pat Leahy (D-VT), who has been a leader in calling for a Senate Judiciary Committee inquiry into the possibility of regulating companies that buy and sell personal data. The calls come after data warehouser ChoicePoint, Inc. discovered that as many as 140,000 consumers had their personal information compromised. (For more information on ChoicePoint, see the February 23 issue of Continuity e-Guide.)

U.S. Sen. Charles Schumer, D-NY, told AP he was told the data backup tapes were likely stolen off of a commercial plane by baggage handlers in December.

Bank spokeswoman Eloise Hale told AP this system of shipping backup tapes was an industry practice and a routine bank practice, because the backup tapes are often stored in different locations as a security measure.

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