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February 10, 2007

VA Update on Missing Hard Drive in Birmingham, Ala.

***Investigation Yielding Additional Information***

WASHINGTON \-- The Department of Veterans Affairs (VA) today issued an
update on the information potentially contained on a missing
government-owned, portable hard drive used by a VA employee at a
Department facility in Birmingham, Ala.

"Our investigation into this incident continues, but I believe it is
important to provide the public additional details as quickly as we
can," said Jim Nicholson, Secretary of Veterans Affairs. "I am concerned
and will remain so until we have notified those potentially affected and
get to the bottom of what happened.

"VA will continue working around the clock to determine every possible
detail we can," Nicholson said.

VA and VA's Office of Inspector General have learned that data files the
employee was working with may have included sensitive VA-related
information on approximately 535,000 individuals. The investigation has
also determined that information on approximately 1.3 million non-VA
physicians -- both living and deceased -- could have been stored on the
missing hard drive. It is believed though, that most of the physician
information is readily available to the public. Some of the files,
however, may contain sensitive information.

VA continues to examine data on the employee's work computer. The
employee has been placed on administrative leave pending the outcome of
the investigation. VA has no information the data has been misused.

-more-

**Birmingham Update 2/2/2/2**

The non-VA physician data is used by VA to enhance the quality of care
for veterans by analyzing and comparing information about the health
care received from VA and non-VA providers.

Next week, VA will begin making notifications to individuals whose
sensitive information may have been on the hard drive. VA is also making
arrangements to provide one year of free credit monitoring to those
whose information proves compromised.

"VA is unwavering in our resolve to bolster our data security measures,"
Nicholson added. "We remain focused on doing everything that can be done
to protect the personal information with which we are entrusted."

  On January 22, the employee, who works at the Birmingham (Ala.) VA
Medical Center, reported the external hard drive was missing.  On
January 23, VA's IG was notified.  The OIG opened a criminal
investigation, sent special agents to the medical center, and notified
the FBI.  VA's Office of Information & Technology in Washington,
D.C. also dispatched an incident response team to investigate. 

The OIG seized the employee's work computer and began analyzing its
contents. This analysis continues and VA IT staff has been providing
technical support.

In addition to the ongoing criminal investigation, the OIG initiated an
administrative investigation to determine how such an incident could
occur.

VA is operating a call center that individuals can contact to get
information about this incident. That toll-free number is
1-877-894-2600. The call center will operate every day from 7 a.m. to 9
p.m. CST as long as it is needed.

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