Texas Attorney General Greg Abbott has charged Radio Shack for violating consumer protection law. The charges followed an investigation that found that RadioShack employees dumped customer records in garbage containers behind the store, making those customers vulnerable to identity theft. The discarded customer information included Social Security numbers, names, addresses, phone numbers, credit card information, and debit card information. RadioShack has been charged with violating Chapter 35 of the state's Business and Commerce Code and violating the 2005 Identity Theft Enforcement and Protection Act.Under the Identity Theft Enforcement and Protection Act companies must protect their customers' personal information and properly destroy the information when it is no longer needed. Chapter 35 of the Business and Commerce Code requires companies to have procedures for keeping and disposing of clients' personal information. Under the Code, companies can be forced to pay up to $500 for each record that is improperly handled.
Meanwhile, TJX Companies Inc., faces a class action lawsuit related to a security breach that allowed hackers to gain the personal information of TJX customers. The class action lawsuit was filed in January and claims that TJX did not do enough to protect customer information and waited too long before informing consumers of the breach. It seeks credit monitoring services and damages incurred by customers who had their identities stolen.
A flaw in the TJX computer system allowed the hacker to obtain credit, debit, and check information on around 46 million customers. That information was then used to make purchases in the United States, Hong Kong, and Sweden. The hacker (or hackers) was in the system a number of times from July 2005 to January 2007. The Federal Trade Commission (FTC) is now investigating the incident.
TJX Companies Inc., owns T.J. Maxx, Marshalls, HomeGoods and A.J. Wright stores in the United States.
Identity thieves can use information, including your Social Security Number, bank account numbers, credit card numbers, and name and address information to commit fraud. They use that information to open credit accounts, borrow money, and make purchases in your name. Most people do not find out that this has happened until collection agencies phone them to collect on those debts.
According to an article at consumeraffairs.com, improper discarding of personal information is a leading factor that contributes to identity theft. The article notes that identity thieves can spend hours going through trash looking for information that can help open false accounts. Information that is useful to them includes credit card offers, receipts, and canceled checks.
There are rules and regulations concerning how companies handle their customers' personal information. Unfortunately, not all companies follow the rules. In many cases, this can result in disaster for their customers if personal information is stolen.