STATEMENT OF THE DEMOCRATIC MEMBERS OF THE HOUSE COMMITTEE ON VETERAN’S AFFAIRS ON VA DATA THEFT

May 22, 2006 

Earlier today, Department of Veterans Affairs (VA) Secretary R. James Nicholson announced that sensitive data collected by the government, containing the names, Social Security numbers and dates of birth for approximately 26.5 million veterans was stolen from a VA official who had removed this data from VA and taken it home. The Secretary was unable to immediately share the exact number of VA employees or others who have access to this sensitive data, nor have we been given the exact reasons why this employee removed the data, some of which reportedly included very sensitive information such as veterans’ disability ratings, from the VA.

The Secretary stated that each veteran will be notified that their personal information has been compromised. A number of law enforcement agencies are working to recover this data.

It is a mystifying and gravely serious concern that a VA data analyst would be permitted to just walk out the VA door with such information. Further, VA must determine who else has access to this type of information, restrict such access to essential personnel only and enforce that internal restriction. The Secretary stated that VA would take steps to assure VA employees complete their special training for safeguarding such information.

The Committee has held a number of oversight hearings in the past on other more limited electronic releases of veterans’ personal information and on what we view as the casual approach some at VA have taken to the importance of safeguarding personal information. Additionally, the VA has not demonstrated an exemplary track record in recent years enforcing its own internal controls or accountability mechanisms.

But, "I told you so" is not an adequate response on Congress’ part. The potential for significant harm if the compromised information should fall into the wrong hands is clear. Examples of problems have appeared in the recent past at VA and ample warnings have been given by our Committee.

The number one problem with this data loss is the potential for identity theft. Over 26 million veterans and their families are at financial risk should their identities be stolen and used for the personal gain of others. This information could also be of value to business interests which focus on veterans and their families in the course of their business dealings. While VA is taking necessary steps to inform the veterans whose private information was compromised, knowledge of that very compromise may create additional stresses in the lives of those veterans. Finally, the sensitive disability rating information included with the compromised data may create other potential problems.

This breach – and any lag from discovery to public revelation -- must receive attention from the very top. We must know who is able to access the data entrusted to them by our citizenry. Everything should be on the table to mitigate and correct this serious information privacy breach and ensure that the personal information of our veterans is protected and safeguarded in the future -- including possible legislation to "make whole" anyone who suffered harm as a result of this compromise.

The VA has posted information regarding this personal data compromise at: www.firstgov.gov Veterans with questions may call toll free: 1-800-FED INFO (333-4636).

LANE EVANS, Ranking Democratic Member

BOB FILNER

LUIS GUTIERREZ

CORRINE BROWN

MIKE MICHAUD

STEPHANIE HERSETH

TED STRICKLAND

DARLENE HOOLEY

SILVESTRE REYES

SHELLEY ERKLEY

TOM UDALL

JOHN SALAZAR