Fidelity: Worker Stole Consumer Data

Employee Stole And Sold 2.3 Million Records; Fidelity Says Data Not Used In Identity Theft

(AP)  Fidelity National Information Services, a financial processing company, said Tuesday a worker at one of its subsidiaries stole 2.3 million consumer records containing credit card, bank account and other personal information.

The employee sold the information to an unidentified data broker. The broker then sold it to several direct marketing companies, but the data was not used in identity theft or other fraudulent financial activity, officials from Fidelity subsidiary Certegy Check Services Inc. said in a conference call.

About 2.2 million records stolen from Certegy contained bank account information and 99,000 contained credit card information, company officials said.

"As a result of this apparent theft, the consumers affected received marketing solicitations from the companies that bought the data," said Renz Nichols, president of St. Petersburg-based Certegy.

"We believe that is the extent of any damage to the public," he said.

The company has found no fraudulent use of the information. An investigation is continuing by the U.S. Secret Service and Pinellas County Sheriff's Office. Those agencies didn't return phone messages seeking comment.

Certegy has asked a court in St. Petersburg to get back all the information from the employee and the marketing companies as well as to stop its use.

Certegy officials said they had contacted the data broker and the marketing companies and believed it would be able to get the data back and prevent its future use. The broker and the companies did not know they were buying stolen information, officials said. Certegy did not release their names.

Certegy will notify all affected consumers of the theft and has contacted major credit agencies, Nichols said.

The employee, whose name was not released, was fired. He was identified as a senior level database administrator who had worked for the company for seven years.

Nichols characterized him as a "rogue and dishonest employee." He said the company will seek civil penalties against the former worker and wants criminal charges filed against him.

The investigation began in May when Certegy learned that some of its customers were being solicited by telephone and mail. It launched an investigation and was unable to detect any breach of its security systems. It hired a forensic investigator to validate its findings and contacted the Secret Service, Nichols said.

The federal agency contacted the marketing companies to question the source of their information and determined it came from a company owned and operated by the Certegy employee. Nichols said he did not know how much money the employee received.

Shares in Jacksonville-based Fidelity National Services slipped 4 cents to $54.74 in morning trading. Certegy has about 1,000 employees.

[jfinster10]

I don't trust Certegy with my financial info. They plastered someone elses debts to my credit report!

[nskduke]

No,not Fidelity!

[iceman_1960]

From Morningstar.com:

"Unlike many large fund companies, Fidelity Management & Research, the advisor to the Fidelity funds, was not implicated in the market-timing or late-trading scandals that rocked the fund industry in 2003 and 2004. According to available regulatory filings and firm disclosures, Fidelity Management & Research has not been disciplined or reached any settlement with a regulatory body in the past three years.

The most serious regulatory issue that Fidelity has faced in recent years concerns its trading operation. The SEC and NASD are investigating the firm's equity traders for gifts they allegedly received from brokers, as well as the traders' business relationships with brokers who are also family members.

We take this issue seriously, because trading commissions are paid from the assets of fund shareholders. As such, they should always be allocated in their best interests... We've been pleased with the way that Fidelity has handled the alleged improprieties. The firm conducted its own investigation, which resulted in 14 traders being disciplined...

Fidelity monitors its trading costs very closely. Given that no harm appears to have been done and that Fidelity is known for running a ruthlessly efficient trading operation that helps its funds keep transactions costs down, we are not deducting any credit from Fidelity's regulatory-issues score at this point. We continue to monitor the situation."

[iceman_1960]

Fidelity was not touched by the scandals that rocked the mutual fund industry a decade or so ago. The ones that propelled Elliot Spitzer to fame.

It's a highly ethical organization.

[iceman_1960]

Fidelity is a class organization.

I've had an account with them for years.

This is an aberration.

[forthepeopl1]

IT WILL ALL USED TO HAVE MORE ILLEIGAL IN THIS COUNTRY

[hypnotoad72]

Talk about infidelity on the part of the worker.

I wonder why... Did he think he was underpaid? Was his job soon to be offshored? Did he look down and see his willy was too small? What?

Given the note in the article he's been dishonest before, I wouldn't be surprised at this course of events. Sad. Always be honest, even when it's bad news.

[lastdance2]

The only thing, Fidelity National Services need to worry about now is :
"Electronic Vote Fraud"

Anyone who uses that stolen information for : "Vote Fraud"
Fidelity National Services - Could be held responsible ! ! !

Lastdance

[ov442]

Fidelity, theres an overused word in banking.