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Personal Data Put at Risk, SAIC Warns

SAIC, a San Diego engineering defense contractor, said July 20 that personal data of some uniformed service members, family members and others was placed at risk while being processed by the company under several health care contracts it has with the federal government.

Also known as Science Applications International Corp., SAIC said forensic analysis has not uncovered evidence that any personal information was compromised, but the possibility cannot be ruled out.

The company said it is notifying 580,000 households, some with more than one affected person.

SAIC said the data was stored on a single, non-secure server and in some cases was transmitted over the Internet in an unencrypted form. The health care contracts were with customers in the departments of the Army, Navy, Air Force and Homeland Security, and the work was being done in connection with Tricare, the health benefits program for the uniformed services, retirees and their families.

The personal data at risk varies by person, but could include combinations of names, addresses, Social Security numbers, birth dates and/or limited health information in the form of codes, SAIC said.

SAIC said it has retained Kroll Inc. to help those whose data may have been compromised by establishing an incident response center. The services include working with individuals who may be victims of identity theft. The pretax cost of these services is estimated to be $7 million to $9 million, excluding the costs for the credit restoration services if any identity theft occurs, the company said.

SAIC Chief Executive Officer Ken Dahlberg said, “We deeply regret this security failure and I want to extend our apologies to those affected by it.”

, Mike Allen

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