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HR Outsourcer Colt Has Data Stolen, Leaves Victims Cold

Posted on Jun 24, 2008 by Tom Fragala

According to PC World, a human resources outsourcing firm called Colt Express Outsourcing, suffered a data breach when thieves stole a number of computers from their offices. Incredibly, Colt did not have an alarm security system (they installed one four days after the theft).

Because Colt handles health benefits, the data stolen was highly sensitive--names, addresses, SSN's, birth dates, and employment information. The mother load. There were a number of employers effected by the theft, including CNET Networks.

Not only was there no alarm system, it appears that victims are being offered no ID theft protection services by Colt Express. In fact, it seems the company is simply shutting down. I suppose the employers themselves are left to decide if they should provide ID theft restoration help to those effected. According to PC World,

Four days after the break-in, Colt Express installed an alarm system, and the company is "looking into what additional steps may be taken to provide enhanced security," Colt wrote in his letter.

Customers looking for free credit-monitoring services from Colt Express should not get their hopes up, however...Colt is now in the process of going out of business.

Strangely, HR outsourcing giant Ceridian announced it had planned to acquire Colt in February 2008. It must be that the acquisition never happened. If it did happen, why isn't Ceridian stepping forward to help? The Colt web site is down, with just the cryptic statement "home page will be reconstructed - June 2008".

I found more from PogoWasRight. An excerpt of the notification letter sent from Colt Express CEO Samuel G. Colt III to CNET Networks:

By this letter and enclosures, we are providing you with all of the information we believe you need, and that we are able to give you. We do not have the resources, financial and otherwise, to assist you further. Towards the end of last year, our customer base was reduced to an unsustainable level. colt has been in the process of going out of business, while at the same time providing time for remaining customers to find alternative solutions. Those decisions are now final.

So it seems this is the deal: Colt, after their own computers were stolen from an office with no security system, is going out of business, leaving customers and thousands of victims with no resources to assist with identity theft protection.