Bank of America Loses Data on 1.2 Million Customers

Back in December, the Bank of America shipped computer data tapes, and a few went missing. Thanks to law enforcement officials, none of the 1.2 million people whose accounts, addresses, and even Social Security numbers may have reached criminal hands only found out about it last week. Since the overwhelming majority of those were US government employees whose business credit cards were on the tapes, the theft may effect taxpayers. While BofA may not have shown the greatest care in managing the transfer of the data, the failure of officialdom to inform the victims is unpardonable.

Millions of data tapes, just like in the old TV shows, are moved around the country every year as part of the banking process. Initial indications are that baggage handlers broke open a box and removed some of the tapes it contained. According to BofA, there was not marking on the box to indicate what it contained. An investigation has yet to reveal whether this was mischief, a planned theft for monetary gain or some kind of terror-related action.

Information has always been the key to monetary gain in the market place. But with the advent of the digital economy, information has become wealth, not just the means to acquire it. William Gibson once defined the term cyberspace, which he coined a quarter of a century ago, as “the place where your money is before the ATM gives you cash.” The computer files are money. And unlike a case of FDIC insurance, it is difficult to see just what sort of compensatory arrangements can be made to those whose information is lost.

BofA has set up a helpline to assist government employees in changing their account numbers, and that is a vital and necessary act. It also should have been done back in late December when the tapes were taken, not in late February when the data may well have been in circulation for two months. Moreover, it seems that the bank was not the culprit behind the delay but authorities who were investigating. This may have been adequate in the 20th century but it won't do today.

If massive amounts of data must be shipped by physical tape (and proper encryption and Internet transfer may be preferable), tightening security won't be enough. Some kind of action must contain the loss, just as a quarantine prevents a disease from spreading. People must be able to change account numbers, taxpayer ID numbers and other details to protect themselves, but also the society in which they live. BofA may have been lax in its security, but the government seems to have been negligent to a far greater degree.


© Copyright 2005 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.
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