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Data theft creates notification nightmare for BlueCross

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IDG News Service - A break-in one evening last October at a shopping mall in Chattanooga, Tennessee, is proving expensive for BlueCross BlueShield of Tennessee.

Over the past five months, the company has employed a small army of workers to sort through the aftermath of what has proved to be a large and complex breach. Late last year, BlueCross and forensics company Kroll OnTrack employed 500 full-time workers and 300 part-time employees, working in two shifts, six days a week, to piece together what happened, the company said in a letter posted to the Maryland attorney general's Web site over the weekend.

As with many data breaches, this one can be traced back to a burglary involving unencrypted data.

On Oct. 2, someone stole 57 hard drives from a closet at the health insurance company's training center in Chattanooga's Eastgate Town Center mall. The drives contained recordings of more than 1 million customer support calls, totalling 50,000 hours of conversation.

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By Robert McMillan

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Author of this article: Robert McMillan
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In 2007, there were 27.1M nonfarm U.S. businesses, employing 117.3M persons and generating $30.0T in business revenues. Firms with paid employees accounted for 5.7M or 21.2% of these businesses & $29.1 trillion or 96.8% in receipts. Firms w/o employees accounted for 21.4M or 78.8% of these businesses and $972.7 billion or 3.2% in receipts.

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