Texas Attorney General Greg Abbott reached an agreement with El Paso-based CNG Financial Corp. and its subsidiaries, Check ‘n Go of Texas Inc. and Southwestern & Pacific Specialty Finance Inc., over charges that the company failed to protect customers from identity theft.
The settlement resolves the state’s May 2007 enforcement action, which charged the defendants with violating laws that govern the disposal of customer records containing sensitive personal information.
Under an agreed upon final judgment, Check ‘n Go will overhaul its information security program. The program must be fully documented in writing and contain administrative, technical and physical safeguards designed to protect the personal information of Check ‘n Go customers.
Check ‘n Go also will pay $220,000 to the State of Texas, which will be appropriated for the investigation and prosecution of future identity theft cases, pursuant to the Identity Theft Enforcement and Protection Act.
The AG’s office took legal action against the defendants in May 2007 after discovering that several Check ‘n Go stores exposed customers to identity theft by discarding business records in easily accessible trash cans. According to the enforcement action, the records included financial records and bank statements that contained names, addresses, Social Security and driver’s license numbers, and checking account information.
Under the new procedures, the defendants must designate an employee from its corporate office to oversee compliance with privacy protection laws. Store employees must be allowed to anonymously report any failures to comply with the program to the designated corporate-based employee. For two years, the compliance representative must forward a sworn statement to the Office of the Attorney General certifying that Check ‘n Go has instituted and satisfied the required employee training.
ID theft Web site
The Texas AG’s office has also launched a Web site, www.texasfightsidtheft.gov, designed to help Texans prevent or minimize the damage from identity theft, the AG’s office said. Among the tools offered on the new site is the Identity Theft Victim’s Kit.
The Attorney General’s Identity Theft Victim’s Kit offers a step-by-step priority checklist that victims can use as soon as possible to prevent further damage. Once the identity theft has been confirmed, for example, victims should quickly close all bank, credit, utility and service accounts. Next, victims should contact one of the major credit bureaus and request that fraud alerts or security freezes be placed on their credit reports. This action prevents new accounts from being opened fraudulently under victims’ names.
Victims also should report identity theft to both local law enforcement officials and to the U.S. Federal Trade Commission (FTC), which provides an identity theft affidavit at www.consumer.gov/idtheft. Many creditors will accept this affidavit on victims’ behalf in lieu of a police report about the crime.
A recent trend among identity thieves suggests the criminal may use victims’ personal information to obtain a driver’s license, file for bankruptcy, seek Social Security benefits or apply for a passport. In such cases, the Identity Theft Victim’s Kit instructs victims to immediately contact any government agencies approached by identity thieves.
Source: Texas Attorney General’s Office, www.oag.state.tx.us/
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