Free Credit Monitoring for Veterans Rescinded After Laptop Recovered
Associated Press

July 18, 2006 1:30 p.m.

http://online.wsj.com/article/SB115323648624909868.html?mod=technology_main_whats_news


WASHINGTON -- Free credit monitoring for veterans whose personal 
information was stolen has been withdrawn, the Bush administration said 
Tuesday, because the laptop containing their data has been recovered.

In a letter to House Speaker Dennis Hastert, White House budget director 
Rob Portman said he was canceling his office's request last month for 
$160.5 million in additional funding for the Department of Veterans Affairs 
to provide one year of free monitoring to millions of veterans and 
active-duty troops.

He noted that the FBI had determined with a "high degree of confidence" 
that information stored on the stolen laptop and external drive were not 
accessed or compromised.

"On the basis of the FBI's analysis, the administration has concluded that 
credit monitoring services and the associated funding will no longer be 
necessary," Mr. Portman wrote.

The announcement came as the House Veterans Affairs Committee was 
considering legislation to provide credit protection and strengthen 
information security following the May 3 theft of 26.5 million veterans' 
and active-duty troops' names, birth dates and Social Security numbers at a 
VA data analyst's home.

Veterans groups have said they should still receive the free monitoring 
following the government's worst information security breach, noting there 
was no certainty that the information had not been compromised.

They also have criticized the VA for the theft, which came after years of 
warnings by auditors that information security was lax, and say that other 
breaches are likely to happen. In a blistering report last week, Veterans 
Affairs Inspector General George Opfer faulted both the VA data analyst and 
his supervisors for poor judgment and said dramatic reform was needed.

VA spokesman Matt Burns said Tuesday that although credit monitoring won't 
be offered, the department planned to hire a company to provide data breach 
analysis to detect potential patterns of misuse of veterans' information.

He said the analysis will be paid for out of current VA funds that will not 
result in a "diminution in the quality of health care."

"While the potential for misuse of this data is considered highly unlikely 
by FBI and law enforcement, data breach analysis will provide additional 
assurances," Mr. Burns said.

The laptop and external drive were recovered June 28 after an informant, 
responding to a $50,000 reward offer, turned in the equipment to U.S. Park 
Police. Authorities have said he was not a suspect and no arrests have been 
made.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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