Connecticut Attorney General's Office

Press Release

Attorney General Demands Details, Consumer Protections For Approximately 2 Million Exposed By Countrywide Breach

September 10, 2008

Attorney General Richard Blumenthal today announced that Countrywide Financial Corp. has revealed that private information on tens of thousands of Connecticut consumers was stolen in a massive national security breach.

Blumenthal has demanded, and Countrywide has promised, that the company will compensate anyone harmed by the breach. Blumenthal is insisting on written guarantees that Countrywide will uphold this promise.

Countrywide confirmed in a discussion with Blumenthal's office that at least 28,123 of its Connecticut consumers were among the estimated 2 million whose private financial data, including Social Security numbers, was stolen by a former employee over an extended period of time and then allegedly sold to third parties.

The former employee allegedly was paid tens of thousands of dollars from the sale of this sensitive information. The massive security breach has resulted in at least two arrests so far and remains under investigation by federal authorities.

As part of its ongoing investigation, Blumenthal's office is seeking more details about the threat to Connecticut consumers; confirmation that the company will provide free credit monitoring and freezes; and a guarantee that consumers will be compensated for losses associated with the breach.

"Thousands of Countrywide consumers in Connecticut deserve an iron-clad promise of protection -- and we are demanding it," Blumenthal said. "This security breach, impacting millions nationally, was the result of deliberate criminal intent to exploit private consumer data. This sensitive and lucrative information was allegedly intentionally stolen and sold for profit -- to third parties who could exploit the information for their own benefit.

"Countrywide consumers justifiably want an explanation for a long-term security failure that enabled an employee -- undetected and uncontrolled -- to download sensitive information over an extended period of time.

"Even more than most security breaches, the threat to consumers here is especially real and urgent because their information was allegedly deliberately exposed and exploited. My office is seeking more details and promises, in writing, that Countrywide consumers will be protected for years to come."

Countrywide has established a hotline for information and questions: 1-866-451-5895.