LaSalle Bank hit with security breach
LaSalle Bank Corp. says a computer tape bearing confidential information on about 2 million residential mortgage customers disappeared last month as it was being transported to a consumer credit company in Texas.
The Chicago bank has alerted law enforcement authorities and is also monitoring transactions closely to detect any unusual or fraudulent activity affecting its customers. The tape contained customers’ names, account numbers, payment histories and Social Security information. So far, there’s no sign any of this information has been misused, the bank says.
The security breach only affects customers of ABN AMRO Mortgage Croup, Inc., a LaSalle subsidiary; the tape didn’t contain any data involving personal or business banking accounts.
“We have begun notifying our customers and are dedicating resources to assist them and to answer any questions they may have,” said Thomas Goldstein, chairman and CEO of ABN AMRO Mortgage Group, in a prepared statement.
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A package containing the tape disappeared sometime after Nov. 18, when it was picked up by DHL from LaSalle’s data center in Chicago. It never arrived at its intended destination: an Experian credit bureau office in Allen, Texas.
LaSalle says it began an internal investigation as soon as it learned the data was missing and asked DHL also to conduct an investigation.
The $110-billion-assets bank stopped physically transporting customer data following the incident, says Mr. Goldstein. Data is now sent electronically, via an encrypted network.
A spokesman for DHL says it has conducted a “thorough investigation and search” of its network and facilities, but hasn’t found any evidence of theft by its employees.
“Although we have not yet closed our investigation, at this time we have uncovered no error in protocol, indications that this package was stolen, or evidence that the contents of the shipment have been disclosed or used for any improper purpose,” the company said in statement.
LaSalle is the latest of a slew of Chicago companies to report security breaches this year. On Nov. 19, Boeing Co. reported the theft of a laptop containing Social Security numbers and other personal data on 161,000 employees. Also hit by identity theft: Motorola Inc., Northwestern University and Trans Union LLC.
The rash of announcements doesn’t reflect a new cyber-crime wave, says Michael Lamprecht, managing director with A.J. Gallagher & Sons. Rather, a new privacy law in Illinois now requires companies to share news of breaches with customers.
“They’re being more forthcoming on the disclosing because they have to be,” says Mr. Lamprecht, who specializes in technology and security issues.
