VA NEWS FLASH from Larry Scott at VA Watchdog dot Org -- 08-08-2006 #1
 


 
 


 

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VA SUBCONTRACTOR LOSES PERSONAL DATA OF 38,000

VETERANS -- Unisys office in Virginia reports "missing"

desktop computer with veterans' data.

 

Here we go again!  More veterans' data lost.

All information on VA data theft on this page...
http://www.vawatchdog.org/va%20data%20theft%20news.htm 

We have a news story, a press release from the VA, a press release from the Senate Committee on Veterans' Affairs and a press release from Rep. Bob Filner (D-CA), Member of the House Committee on Veterans' Affairs.

News story here... http://customwire.ap.org/dynamic/stories/
V/VETS_DATA_THEFT?SITE=NDBIS&SECTION=
HOME&TEMPLATE=DEFAULT&CTIME=2006-08-07-14-59-22

Story below:

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VA: Data for 38,000 Veterans Missing

By HOPE YEN
Associated Press Writer



WASHINGTON (AP) -- As many as 38,000 veterans may be at risk of identity theft because a Veterans Affairs Department subcontractor lost a desktop computer containing their sensitive personal data.

VA Secretary Jim Nicholson said that Unisys Corp., a subcontractor hired to assist in insurance collections for VA medical centers in Philadelphia and Pittsburgh, reported the missing computer last Thursday. The computer was being used in Unisys offices in Reston, Va.

It is not yet known what happened to the computer, Nicholson said, adding that local and federal authorities are investigating.

The computer is believed to contain names, addresses, Social Security numbers, dates of birth, insurance carriers and claims data including medical information for veterans who received care at the hospitals in Philadelphia and Pittsburgh during the past four years.

According to initial estimates, the data covered about 5,000 patients treated at Philadelphia, 11,000 treated at Pittsburgh and 2,000 deceased patients. The VA is investigating whether the information also may have covered 20,000 who received care through the Pittsburgh medical center.

Unisys spokeswoman Lisa Meyer said company officials were investigating and declined to say whether a particular employee had been using the computer.

The computer was located in a building and floor where security procedures were in place for access, and there were no signs of a break-in, she said. The computer was password protected, but the data was not encrypted.

The disclosure comes after a string of recent data breaches at the VA, including the May 3 theft of 26.5 million veterans' personal data from a VA employee's home in suburban Maryland. The laptop and external drive containing that information has since been recovered, and two teens were arrested Saturday as part of what appeared to be a routine burglary.

In recent weeks, the VA has also acknowledged losing sensitive data for more than 16,000 veterans in at least two other cases in Minneapolis and Indianapolis.

Nicholson said in a statement Monday that the VA was working with Unisys to notify those veterans affected and to provide credit monitoring if appropriate.

"VA is making progress to reform its information technology and cyber security procedures, but this report of a missing computer at a subcontractor's secure building underscores the complexity of the work ahead," Nicholson said.

Lawmakers were critical of the VA. Rep. Lane Evans, the top Democrat on the House Veterans' Affairs Committee, called the latest data breach "yet another wake-up call."

"Today's announcement by the VA that sensitive personal information of veterans was compromised by a VA subcontractor last week confirms that the VA must move quickly to protect the information it maintains on veterans and their families," Evans said.

"I am absolutely appalled that another computer containing the personal information of veterans has gone missing," said Sen. Rick Santorum, R-Pa. "Those responsible must be held accountable and the VA clearly needs to do a better job of overseeing its contracting entities."

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VA press release here... http://vawatchdog.org/vapressrelease/
vapressrelease08-07-06.htm

Press release below:

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Subcontractor Notifies VA of Missing Computer with Vet Files

August 7, 2006

VA, Law Enforcement Authorities Investigating



WASHINGTON – The Department of Veterans Affairs (VA) today announced that a subcontractor, hired to assist in insurance collections for VA’s medical centers in Pittsburgh and Philadelphia, has informed the Department that a desktop computer containing personal information on some veterans is missing from the company’s offices.

“VA’s Inspector General, the FBI and local law enforcement are conducting a thorough investigation of this matter,” said the Honorable R. James Nicholson, Secretary of Veterans Affairs.

VA was notified on the afternoon of Thursday, August 3, by the subcontractor, Unisys Corporation, that the computer was missing from its Reston, Va., offices. VA immediately dispatched a team to Unisys to assist in the search for the missing computer and to help determine the precise nature of the information it may have contained.

While the investigation is in an early stage, VA believes the records involved are limited to people who received treatment at the two Pennsylvania medical centers during the past four years. It is believed the desktop computer may have contained patients’ names, addresses, Social Security Numbers, dates of birth, insurance carriers and billing information, dates of military service, and claims data that may include some medical information.

Initial estimates indicate the desktop contained information on approximately 5,000 patients treated at Philadelphia, approximately 11,000 patients treated at Pittsburgh, and approximately 2,000 deceased patients. VA is also investigating the possibility the computer may have contained information on approximately another 20,000 people who received care through the Pittsburgh medical center.

Investigators are working on this incident with the full cooperation of Unisys. VA is also working with Unisys regarding the offer of credit monitoring and individual notifications to those who may be affected.

Upon learning the computer was missing, VA personnel took immediate steps to notify the appropriate senior VA leadership, including the Secretary and Deputy Secretary, appropriate congressional offices and committees, VA’s Office of the Inspector General and other law enforcement authorities, including the FBI and the Department of Homeland Security’s Computer Emergency Response Team.

The ongoing investigation will provide VA more details on the precise number of veterans whose information the computer may have contained. VA will provide further updates as the investigation produces additional information.

“VA is making progress to reform its information technology and cyber security procedures, but this report of a missing computer at a subcontractor’s secure building underscores the complexity of the work ahead as we establish VA as a leader in data and information security,” Nicholson added.

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Press release from the Senate CVA here... http://vawatchdog.org/
senatecvanews/senatecvanews08-07-06.htm

Press release below:

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NEW COMPUTER DATA LOSS AT VA

“This whole problem with VA data security has got to stop,” Craig says
Sen. Larry Craig, Chairman of the U.S. Senate Committee on Veterans' Affairs

August 7, 2006
Media contact: Jeff Schrade (202)224-9093



(Washington, DC) A newly reported missing computer involving the personal information of 37,000 veterans has triggered a stern reaction from the Chairman of the Senate Committee on Veterans’ Affairs.

"On Friday VA officials informed members of Congress that a desktop computer containing information on veterans insurance claims was discovered missing from a subcontractor’s offices in Reston, Virginia. Since it was a private contractor involved, I expect VA to hold the contractor financially responsible for any costs that veterans may incur as the result of this loss," said Sen. Larry Craig (R-Idaho) who chairs the Senate oversight committee on veterans’ issues.

VA was notified Thursday, August 3, by the Unisys Corporation that a desk top computer was missing from the contractor’s offices in Reston, Virginia. The Department of Veterans Affairs immediately dispatched a team to assist in the search for the missing computer and to help determine the precise nature of the information it may have contained. According to VA officials, information on the computer was password protected but was not encrypted.

Initial estimates indicate the desktop contained information on approximately 5,000 patients treated at Philadelphia, approximately 11,000 patients treated at Pittsburgh, and approximately 2,000 deceased patients. VA is also investigating the possibility the computer may have contained information on approximately another 20,000 people who received care through the Pittsburgh medical center.

It is believed the desktop computer may have contained patients’ names, addresses, Social Security Numbers, dates of birth, insurance carriers and billing information, dates of military service, and claims data that may include some medical information.

Over the weekend police arrested two individuals – both 19 years old – in the theft of another computer which contained personal information of 26 million veterans and active-duty military members. A third individual – an unnamed juvenile – is also being held in custody.

The loss of that computer earlier this year led to several resignations at VA and numerous hearings on Capitol Hill. An analysis by FBI forensic experts determined the data was not breached.

"I hope that we have as good of news this time," Craig said. "We clearly appear to have a systems problem with VA data security that needs to be fixed."

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The press release from Rep. Bob Filner (D-CA) of the House Committee on Veterans' Affairs has not been posted yet...but below is the copy I received by email.

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Congressman Filner Responds to Latest Investigation of Data Theft Involving the Department of Veterans Affairs

 

Washington, D.C. - Congressman Bob Filner (D-CA), Acting Ranking Democratic Member of the House Committee on Veterans' Affairs, expressed his concern over the latest data theft involving the Department of Veterans Affairs (VA). According to the VA, the sensitive personal information of Pennsylvania veterans was compromised last week by a VA subcontractor. The data was on a desktop computer which disappeared from a secure area of a Washington, D.C. area company.

"Although I applaud the VA's timely notice regarding this tragic event, I believe that this latest revelation highlights once again why it is important that H.R. 5835, the Veterans Identity and Security Act of 2006, be speedily adopted by the House of Representatives when Congress reconvenes in September. When veterans are harmed as the result of government action or in-action, remedies must be provided by the federal government."

H.R. 5835, co-sponsored by Congressman Filner, addresses internal VA management of information technology, mandates speedy notification in the event that the sensitive personal information of veterans is compromised, and provides veterans with the tools they need to protect their credit. The bill also puts in place additional protections such as free credit reports, fraud resolution services, and identity theft insurance whenever there is a reasonable chance of the misuse of veterans' information. The bill provides remedies for veterans whose data is lost by VA data breaches and those of VA contractors and subcontractors, as occurred last week.

"We must do everything we can to ensure that the VA protects the sensitive personal information of our nation's veterans, and we must do everything we can to assist veterans and their families if the VA fails them. The Committee on Veterans' Affairs has held hearing after hearing exploring the VA's failures to safeguard sensitive data and the steps we should take as elected officials to fix this growing problem. Now is the time to take action!" concluded Congressman Filner.

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Larry Scott

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