The home loans giant has admitted that the records of more than two
million people who applied to Countrywide for mortgages between July
2006 and July 2008.
According to Connecticut Attorney General Richard Blumenthal, the case
is unlike any other data theft in that there can be no doubt the
information isn't just missing.
"It was sold, we know that. We don't know precisely who bought it,"
Blumenthal said, calling the loss "extraordinarily frightening",
because it was caused by criminal activity.
The FBI's Los Angeles operation says it has arrested two men - one a
former Countrywide employee - on charges related to the illegal sale
of the data.
The home loans firm has moved swiftly to resolve any issues with
customers, offering to fully compensate those affected for their
losses and offer free credit checks through a variety of firms.
Affected customers should receive letters advising them of their best
options in the next few days, the company stated.
Over the FBI, meanwhile, the agency says that Wahid Siddiqi - a third
party who allegedly bought the data from Countrywide staffer Rene
Rebello Jnr - will go on trial on October 14.
Rebello, who is alleged to have gained between $50 000 and $70 000
from his actions, meanwhile, will go on trial on October 7. Both men
have pleaded not guilty in their initial court appearances.
According to the FBI's affidavit, Rebello is alleged to downloaded
information about approximately 20 000 customers each week for nearly
two years to a portable flash drive.
Interestingly, Countrywide is quoted as saying it had implemented a
number of security features that should prevent this situation from
happening.
Rebello, however, who had reportedly worked for the firm for almost
ten years, had access to a PC without the security features and was
then said to be able to sell each block of 20 000 customer's data for
$500 a time.
Concerned customers are asked to Countrywide on its incident hotline
1-866-451-5895.