Criminals
breach Equifax again
By SIMON AVERY
Thursday, June 16, 2005
From Friday's Globe
and Mail and GlobeInvestor
and GlobeAdvisor
For the second time in about a year, the credit reporting company
Equifax Canada Inc. has suffered a security breach that has given
criminals access to personal financial information of hundreds of
Canadians.
The latest case came to Equifax Canada's attention
several months ago, but was made public only Thursday.
Criminals that breached the firewall gained access
to 605 consumer files, which contain personal information ranging
from names and addresses to type of bank loans and credit cards,
payment obligations and social insurance numbers. Credit card and
bank account numbers are not part of the files, but security experts
say the information in the files can be used by criminals for identity
theft and even to build bogus business accounts.
“Their first goal is to steal as much as they
can and then see what they can do with it,” said Claudiu Popa,
president of Informatica Corp., a network security consultancy in
Toronto.
A more sophisticated use would be to try to correlate
some of the data with other financial information, and open merchant
accounts using the stolen names. Those accounts could then be used
to create bogus e-commerce sites that steal from unsuspecting on-line
shoppers, he said.
Neither Equifax nor police would say whether the
information has been put to malicious use.
A spokeswoman for Equifax Canada, Marie-Line Colangelo,
said the company has informed, by mail, all the people affected,
and the breach has been secured. It has also tagged the affected
accounts with the heading “lost or stolen identification”
to warn creditors to confirm the consumer's identity to protect
against possible identity theft.
She would not comment on whether the unauthorized
access was by hackers breaking into Equifax Canada's computer systems,
by physical theft of the information, or by other means. In a statement,
the company said: “We have learned of an incident involving
what appears to be the improper use of one of our customer's access
codes and security passwords.”
The RCMP said it was contacted by Equifax Canada
several months ago and has been conducting an investigation since
then out of British Columbia, where most of the affected individuals
live.
Corporal Anthony Choy, an RCMP spokesman, would
not say if the two security breaches were connected. The investigation
into the first one is still under way and no arrests have been made,
he said.
A little over a year ago, Equifax reported that
criminals posing as legitimate credit grantors had accessed the
credit files of roughly 1,400 consumers, primarily in B.C. and Alberta.
Mr. Popa said it's widely assumed in the security
industry that the 2004 attack occurred when criminals managed to
fool Equifax's on-line account system into granting administrator-like
access — known as an elevation of privilege attack. It's entirely
possible that elements of the first crime were still present in
Equifax Canada's computer system, allowing for a second breach,
or that the criminals had help from the inside, Mr. Popa said.
“For a credit reporting agency, this is a
huge hit,” he said. “All the trust goes out the window.”
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