VA Asking for More Money After Data Theft

Rep. Steve Buyer, R-Ind., left, and James Walsh, R-N.Y. talk on Capitol Hill, Tuesday, June 27, 2006 during a House hearing to discuss the Veterans Administration's data theft. Rep. Walsh chastised the VA for waiting three weeks to notify veterans about the theft, saying "This represents a significant lapse of time that could have been vital to protect identity theft,".(AP Photo/Lawrence Jackson) (Lawrence Jackson - AP)

"Unfortunately, as we have all come to realize, the question is not whether another incident of information theft will occur but when," McIntyre said. "Events such as these are happening with increased regularity _ and, surely, spending a few million to prepare is preferable to spending hundreds of millions to react."

Rep. James Walsh, R-N.Y., chairman of the House subcommittee, chastised the VA for waiting three weeks to notify veterans about the theft. "This represents a significant lapse of time that could have been vital to protect identity theft," Walsh said.

In his testimony, Nicholson called the burglary a "wake-up call" that should not have come at the expense of veterans, some of whom have challenged the free monitoring in court as potentially inadequate. He said about half of the affected veterans were expected to take the government's offer.

Separately, the VA asked a federal judge to revise his order barring the VA from publicizing its free credit monitoring offer. The VA said it wished to continue providing information to veterans through its Web site and call center and had no intention of asking veterans to relinquish their rights to a potentially larger payout in court.

U.S. District Judge William Bertelsman in Kentucky scheduled a hearing for Friday to determine whether the VA should revise its deal.

The class-action lawsuits, which are pending in Covington, Ky., and Washington, seek free monitoring and other credit protection for an indefinite period as well as $1,000 in damages for each person _ or up to $26.5 billion total.

Stacy Hinners, an attorney representing veterans, said veterans did not wish to shut down the call center and Web site but simply wanted the VA to be clear what rights veterans would have if they accepted the free offer.

Veterans groups and lawmakers from both parties have criticized the VA for the theft and noted years of warnings by auditors that information security was lax. The data analyst _ who was in the process of being dismissed _ had taken the information home on a personal laptop for three years.

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On the Net:

For veterans suspecting identity theft: http://www.firstgov.gov or 1-800-FED-INFO