Countrywide alerts customers to security breach

Countrywide alerts customers to security breach

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Story Published: Sep 12, 2008 at 7:23 PM PDT

Story Updated: Nov 21, 2008 at 2:09 AM PDT

By Connie Thompson

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Homeowners who took out mortgages through countrywide financial corporation are calling for tougher penalties against workers who steal customer information.

Countrywide is notifying customers across the country that their personal information may have been sold to a third party.

Already reeling from heavy losses, and under attack for its sub-prime loans, Countrywide is now engaged in damage control- for a security breach that points to a calculated inside job.

According to letter going out to Countrywide customers, an employee who's since been fired and arrested got access to client files, which includes names, addresses, mortgage loan numbers and social security numbers.

The information was reportedly sold to third parties for as much as $500 a pop, with the suspect taking in $50,000 and $70,000.

In it's letter to customers, Countrywide promises to take necessary precautions to monitor customer mortgage accounts for suspicious or unauthorized activity.

Countrywide is also offering customers free credit monitoring for a period of two years.

The FBI is quoted as saying as many as two million Countrywide customers may have had their information stolen.

Our calls to Countrywide headquarters in California got an e-mail response.

The company says it cannot talk about the information, or how many files may have been involved, but so far there's no evidence of identity theft or fraud to consumers resulting from the breach.

Countrywide says after the 2-year free monitoring period, customers will have the option of continuing the monitoring service for a fee.

In the meantime, anyone whose private information is breached should contact the major credit reporting agencies and put a fraud alert on their credit reports.

All consumers should keep a close eye on their monthly statements to look for unauthorized charges or account activity.

People who get their hands on stolen information often wait for months before they use it. They may also make small charges to see if anyone's paying attention.

According to the Privacy Rights Clearinghouse, which has been tracking security breaches in the U.S. Since 2005, the total number of records breached at financial institutions, retailers, colleges and government agencies is nearly 245 million, not counting the latest breach at Countrywide.

More information:

Privacy Rights Clearinghouse

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