ScreenDiscussion

Blogging background checking and security issues

3.01.2005

Choicepoint in the Global Spotlight

New Zealand's The National Business Review posted an article on the mess that Choicepoint is currently in. The article points out the fact that it was Choicepoint’s blunder, not the determination of a skilled hacker, that led to hundreds of thousands of individuals’ personal information being stolen. On top of this, Choicepoint is also slammed for additional lawsuits related to incorrect information that have been filed within the past several years.

Choicepoint is a giant in the employment screening industry, and there is no doubt that this incident will be a hard blow to the company. If there is a lesson to be learned here, it is that any aspiring company in this industry needs to develop and execute processes that are designed to both guarantee the reporting of high quality information and also to be proof of due diligence in its business practices should legal. Process, process, process. It’s a pain to be doing all the time, but these days, and especially in an industry as sensitive as employment screening, it’s corporate suicide not to do it. The legal proceedings haven’t been wrapped up yet for Choicepoint, but I expect that they won’t emerge unscarred.

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