<http://internet-security.ws/>

Authorities say an identity theft scheme involving Teledata Communications in New York came from the inside when an employee sold passwords for downloading consumer credit reports. Prosecutors said in November that more than 30,000 people were victimized with losses of more than $2.7 million.

In December, thieves physically broke into an office of TriWest Healthcare Alliance in Phoenix and stole computer hard drives containing Social Security numbers and addresses of about 562,000 military personnel and their families. The company, which posted a $100,000 reward for information, said no identity thefts have been reported.

Last month, a hacker broke into the computers of Data Processors International, a company based in Omaha, Neb. that handles transactions for catalog companies and other direct marketers. The Secret Service said the hacker accessed more than 10 million credit card numbers.