2007 Was a Record Year for Data Breaches

Published: January 9, 2008

by Alex Woodie

The number of data breaches exploded in 2007, largely as a result of the TJX incident, according to two groups that track data breaches. With hundreds of millions of people around the world at risk of identity theft, companies and other organizations that store personal information need to step up their security efforts to stop the problem, the groups say.

According to an Associated Press article, 79 million records containing personal information about private citizens were compromised in the United States last year, an increase of 400 percent over the previous year, according to the Identity Theft Resource Center. The AP also quotes the Web site Attrition.org as counting 162 million compromised records in the world as a whole, a three-fold increase from 2006.

Much of the increase in the two groups' figures can be traced to a single incident occurring at TJX, the corporate parent of the TJ Maxx and Marshalls discount department stores. The ITRC says TJX was responsible for the loss of 46 million records, while Attrition.org says 94 million records were put at risk in the incident, according to the AP. TJX disclosed the compromise of its customer database a year ago.

Linda Foley, who founded the ITRC after becoming a victim of identity theft, paints a dire picture of how the identity theft industry will evolve in 2008. To start, the number of breaches will increase this year due to poor information handling and practices (that almost goes without saying), which will lead to new laws and state programs designed to help victims. However, companies will at least try to stem the outflow of sensitive data by devising new authentication methods using the Web and telephones.

Another negative indicator is the fact that identity thieves are starting younger. That, she says, is a strong indicator that "identity theft is becoming a lucrative career path." The industry is becoming increasingly sophisticated and skilled at concealing their wares inside of viruses and Trojan horses designed to trick people into divulging information, she says.

"Identity theft is like the never-ending story," Foley says. "It acts like an oil spill that spreads in yet another direction with the ocean currents and wind despite best efforts to contain it."

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