ABC's Boston Legal takes on data privacy issues

ABC's Boston Legal got our attention last month with a scathing critique of the credit card industry. This month, the show's producers seem to be going after data privacy issues. In this week's episode, Alan Shore sues an HMO for inadequate internet security that led to a woman being murdered. (Read the transcript here) In this case, a man armed with his ex-wife's Social Security number was able to login to her insurance records and track her down. Could this happen in real life?

Unfortunately, yes. If someone is armed with your name, birth date, Social Security number and address, they can likely gain access to your personal information. Most large data companies (including the credit bureaus) have "identity confirmation systems" online to prevent this type of fraud. However, these systems only ask a few questions and a thief who knows a lot about you might be able to pass through. More worrisome are the smaller online businesses (such as health insurers, accountants or universities) that may not have such protections in place.

The moral of the story? Businesses need to be exceedingly careful about the way they store, safeguard and share consumer data. Although there are few laws in place to regulate business data policies, it is important for companies to take every precaution to protect their customers. Consumers also need to be aware of their own identity theft risks. Messy divorces can often lead to identity theft when the ex uses their knowledge of their former spouse to steal data or get revenge. If you think you may be at risk, sign up for a credit monitoring program, reset your passwords and closely watch your online accounts.