ChoicePoint: Personal Data and a Loss of Privacy (A)

Abstract

On September 27, 2004, ChoicePoint, a company that stores and sells critical personal information, discovered possible fraudulent activity within its network of databases. On further investigation, ChoicePoint security officials realized that they may have allowed identity thieves in Los Angeles, who acted as legitimate business clients, to access more than 110.000 people’s personal information. CEO Derek Smith and Communications Chief James Lee are faced with explaining the loss to clients, the press, the public, and those who may have been compromised. They also face the daunting task of restoring confidence in the company.

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This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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