Tuesday, May 1, 2007

Printing Firm Fired After Security Breach

The frequent press reports of new security breaches tend to focus on the number of customers or employees affected by the breaches and the potential for identity theft or other malfeasance resulting from the breach. However, a recent report in the Boston Globe reveals another casualty of a security breach -- the termination of the printing service contract with the company responsible for the security breach. The Boston Globe reported that the State of Massachusetts has cancelled its contract with Indianapolis-based Allison Payment Systems, worth $235,000 in income per year, for mailing forms to taxpayers that contained their neighbors' Social Security numbers. Allison acknowledged the error, and blamed it on a computer system malfunction. However, the Massachusetts Department of Revenue performed an audit of Allison's automated operations after the breach concluded that the copany did not have adequate internal controls in place. Boston Globe

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