Stolen VA Data Includes Active Troops

Pentagon Changes Estimate From 50,000 To 2 Million; Comes As Vets Groups Sue Feds

(CBS/AP)  The Pentagon tells CBS News that the recent theft of personnel information affects not only veterans, but nearly two million active duty military troops, National Guard and Reserves, reports CBS News correspondent Bob Orr.

This estimate is much larger than the Department of Veterans Affairs earlier estimate of 50,000 names, social security numbers, and birth dates for active duty Navy personnel and National Guard and Reservists, reports Orr.

The discovery comes the same day that a coalition of veterans' groups charged in a lawsuit that their privacy rights were violated after thieves stole personal data on 26.5 million military personnel from a Veterans Affairs employee.

The class-action lawsuit against the federal government, filed in U.S. District Court in Washington, is the second suit since the VA disclosed the May 3 burglary two weeks ago.

The theft has "caused much consternation amongst my clients," said attorney Douglas Rosinski.

CBS News correspondent Barry Bagnato reports the suit by the "band of brothers" demands that the VA fully disclose which military personnel are affected by the data theft and seeks $1,000 in damages to each person — up to $26.5 billion total. The veterans are also asking for a court order barring VA employees from using sensitive data until independent experts determine proper safeguards.

"VA arrogantly compounded its disregard for veterans' privacy rights by recklessly failing to make even the most rudimentary effort to safeguard this trove of the personally identifiable information from unauthorized disclosure," the complaint states.

"We are heroes when we are doing the war and protecting the people. When we come out, we're like a piece of used equipment," World War II veteran John Bankston said at a news conference Tuesday.

The VA said Tuesday it is in discussions with credit-monitoring services to determine "how veterans and others potentially affected can best be served" in the aftermath of the theft, according to spokesman Matt Burns. He said the VA has received no reports of stolen data being used for fraudulent purposes.

Burns said the VA had no specific comment on the lawsuit because it does not comment on pending litigation.

In a new letter, the VA warns veterans to watch for scam artists trying to play on their fears, reports Bagnato. Veterans who suspect they are the victims of identity theft and go to www.firstgov.gov or call 1-800-FED-INFO.

"All veterans should be vigilant and take appropriate actions," said attorney Rosinski.

Maryland authorities, meanwhile, announced that they were offering a $50,000 reward for information leading to the return of the laptop or media drive taken during the May 3 burglary at a VA data analyst's Aspen Hill, Md. home.