Vets Fear Damage From Lost Data

Troops Fear Lost Information Could Cost Them Dearly

(CBS)  As the scope of the Veterans Affairs security breach continues to widen, CBS News correspondent Bob Orr reports veterans and now active duty troops are growing increasingly frustrated — they're worried that their own names, Social Security numbers and birth dates could cost them dearly.

"I'm trying to get bigger and better things happening in my life," says Gulf war ve Marcus Oates. "Tomorrow, somebody could tear it down by maxing out my credit cards."

Orr reports that there's still no evidence that any veteran or soldier has been defrauded. But cyber-security experts estimate the street value of the stolen data could run into the hundreds of millions of dollars. Critics says the $50,000 reward offered by the VA for the recovery of the stolen laptop is little incentive. So far, police have received no good tips.

The computer and files containing unencrypted personal information for more than 26 million veterans were stolen on May 3 during the burglary of a VA data analyst's home.

But, it took nearly three weeks for the VA to tell the public, and another two weeks to say that the theft also included the records of more than 2 million active duty, reserve and National Guard troops. That's 80% of the active duty force.

VA Secretary Jim Nicholson, who claims his own deputy kept him the dark, will be grilled for a second time about the widening ID theft scandal Thursday on Capitol Hill. But Democrats, smelling a political opportunity, unloaded on Wednesday.

Washington Sen. Patty Murray said she was "just appalled at the pattern of incompetence and negligence." Vermont Sen. Patrick Leahy said the incident is "sheer recklessness on the part of the VA and the administration."

The VA is firing the employee, saying he had no authorization to take the computer files home. But congressional sources say nothing in the VA's policies would have required him to get permission, and that the employee is being made a scapegoat.