Eye On The Market

Ohio Gov. Ted Strickland has announced that the names and Social Security numbers of all 64,000 state employees were contained on a computer back-up device that was stolen in mid-June. The device also contained the names and Social Security numbers of 225,000 Ohio taxpayers. However, the governor says the data would be very difficult for a thief to access.

Preliminary research had revealed that some of the nearly 339,000 files might have contained names and Social Security numbers. However, after two days of review, it was determined that the names and Social Security numbers for all state employees were on the device. The device also contained a list of taxpayers with uncashed personal income tax refund checks, a list of lottery winners with uncashed checks, a list of uncashed checks from unclaimed funds payments and a list of rejected electronic funds transfers. Names, Social Security numbers and bank account numbers were among the information.

A Web site, www.ohio.gov/idprotect, will provide ongoing information for employees and the public regarding the situation.

The device was stolen from a state intern’s car. Electronic data management standards at the intern’s worksite call for one set of backup data to be stored off-site, and the intern had been inappropriately designated to store the data at his home.

The governor has ordered the cessation of this data management practice and a review of the events that led to the data being compromised. Strickland says he will take appropriate disciplinary action when the facts are known.

Affected parties have access to free ID theft protection services for one year.

Mellon Financial Corp. has agreed to pay $16.5 million to settle a civil case involving the shredding of thousands of unprocessed tax returns in 2001.

According to the Pittsburgh Post-Gazette, the agreement covers Mellon’s civil damages and penalties for violations of the False Claims Act.

The shredding occurred after the Mellon Client Service Center in Pittsburgh had contracted with the Internal Revenue Service to process tax returns. A supervisor, realizing the staff would not be able to complete the work by the April 29 deadline, ordered the unprocessed returns to be shredded.

Eight former Mellon employees have been charged, four of whom have pleaded guilty to criminal charges in federal court, according to the Pittsburgh Post-Gazette.

Mellon has paid $18.1 million in a separate settlement to cover the interest lost from the time the checks were shredded to the time the replacements were sent and the cost for the IRS and U.S. Department of the Treasury to move the processing contracts, according to the report.

To avoid further criminal action, Mellon has agreed to appoint a special monitor to oversee its corporate compliance program for the next three years.

Secure Destruction Business magazine and Shred-Tech are among the sponsors of Shred Summit 2007, which is Oct. 17-19 at the Wyndham Chicago O’Hare hotel.

Total Training Services, Spartanburg, S.C., is the event organizer. Sponsors include EZ Shred, IPS Balers, Jim Kiltch Enterprises, North Shore Capital Advisors and Viking Fibres Inc.

The programming offers topics specific to secure shredding and storage businesses, such as "Record Storage 101" and "Electronic Scrap," as well as guest speakers in sales, motivation and management.

Guest speakers include:

An early registration rate is available until Sept. 1. Registration information can be obtained by e-mailing rsanborn@totalproductdestruction.com.