Government Gets a 'C' on Data Protection

While the government offers plenty of tips for consumers to protect themselves from identity thieves, it hasn't been too careful with Americans' personal information itself.

One-fifth of publicly disclosed identity breaches stem from state mishaps, according to a Consumer Reports analysis of a comprehensive list of data breaches maintained by Privacy Rights Clearinghouse.

For instance, in one recent incident, the San Francisco Human Services Department carelessly discarded confidential case files in garbage and recycling bins on a curb. The files contained "blown up copies" of Social Security cards, driver's licenses, passports, bank statements and other sensitive personal information, according to the Web site.

All told, there have been more than 230 of such bungles by federal, state and local governments from 2005 through mid-June, which have exposed at least 44 million consumer records.

While the Clearinghouse list provides some startling examples of carelessness by government agencies -- as well as health care companies, retailers, banks and even a Department of Consumer Affairs -- Consumer Reports notes there are many other data breaches from state agencies that go unreported. A 2006 investigation by the House Oversight and Government Reform Committee discovered 788 breaches between January 2003 and July 2006 at 17 federal departments and agencies -- few of which were publicly disclosed.

A more recent report from the Treasury Inspector General for Tax Administration revealed 24 incidents in which IRS laptops containing 480 taxpayers' information were lost or stolen because IRS employees put them in checked baggage at an airport, left them in unlocked cars or lost them on trains or buses. Only one employee was disciplined.