RadioShack cited for failing to protect customer information

Texas Attorney General Greg Abbott announced he has taken legal action against Fort Worth-based RadioShack Corp-oration for exposing its customers to identity theft.

According to documents filed by the AG’s office on April 2, 2007, RadioShack violated a 2005 law requiring businesses to protect any consumer records that contain sensitive information, including Social Security and bank account numbers.

The AG’s office alleges that a RadioShack store in Portland, near Corpus Christi, exposed thousands of its customers’ personal identifying information by dumping bulk customer records in garbage containers behind the store. According to investigators, the records contained sensitive consumer information, including Social Security numbers, credit and debit card information, names, addresses, and telephone numbers.

The records included personal information from one consumer’s 1998 credit application and another receipt from a local woman who, ironically, purchased a shredder from RadioShack in order to protect herself from identity theft.

Also discovered among the discarded records was sensitive information from a credit card issued to the City of Portland, according to Portland Police Chief Randy Wright, who joined Abbott in denouncing the store’s actions.

“Identity theft is one of the fastest growing crimes in the United States,” Abbott said. “Texans expect their personal information to be protected. The Office of the Attorney General will take all necessary steps to ensure that consumers are protected from identity thieves.”

RadioShack is accused of violating provisions of the 2005 Identity Theft Enforcement and Protection Act, which requires the protection and proper destruction of clients’ sensitive personal information. Corpus Christi Sen. Juan “Chuy” Hinojosa sponsored the legislation, which gives the Office of the Attorney General authority to seek penalties of up to $50,000 per violation.

The AG also charged RadioShack with violations under Chapter 35 of the Business and Commerce Code, which requires businesses to develop retention and disposal procedures for their clients’ personal information. The law provides for civil penalties of up to $500 for each abandoned record.

Investigators are trying to determine if any exposed data has been used illegally. Consumers who interacted with the Portland store are advised to monitor bank, credit card and any similar statements for evidence of theft. Customers should also consider obtaining free copies of their credit reports.

In addition to citing RadioShack, the AG’s office recently took identity theft enforcement action against On Track Modeling, a North Carolina-based talent agency that apparently abruptly shut down its Grand Prairie office and abandoned more than 60 boxes containing hundreds of confidential client records, and against Jones Beauty College in Dallas for improperly discarding student financial aid forms containing Social Secur-ity numbers and other personal information.

Complaints may be filed with the the Office of the Attorney General at (800) 252-8011 or online at www.oag.state.tx.us. Consumers can also obtain information on how to detect and prevent identity theft from the AG’s office.

Source: Texas Attorney General’s Office.