A desktop computer with personal information from more than 500,000 New York state workers' compensation recipients is missing from the information technology division of New York-based Marsh insurance brokerage, a company director said.
Alfred J. Modugno, a spokesman for Marsh, a unit of Marsh & McLennan, confirmed a report that a computer containing personal information on claimants receiving state workers' comp payments through the Special Funds Conservation Committee is missing from CS STARS, Marsh's information technology division based in Chicago.
Special Funds Conservation Committee manages and maintains the state's Special Disability Fund and the Fund for Reopened Cases.
Mr. Modugno said the information was lost on May 9, but the loss was not reported to management until June 19.
After an investigation by management and MMC's investigative services, Kroll, confirmed the information was missing, the Special Funds was alerted of the problem on June 29, Mr. Modugno said.
"They were absolutely appalled that it took so long for [management] to be notified internally," said Mr. Modugno. "It was an internal breakdown. Someone did not follow the protocols for securing hardware and did not report this missing."
Mr. Modugno refused to identify what he said was missing "hardware," but Karen Allen, director of operations for Special Funds Conservation Committee, explained that a desktop computer sent to CS STAR for data conversion was involved.
She said the computer was received by CS STAR at their secure facility, but at this point no one can say if the computer was stolen or simply misplaced.
In addition to claimants–whose names, addresses, telephone and Social Security numbers were on the computer–the names, addresses and tax identification numbers of health providers were also on the system.
There is no indication that any data has been used illegally to date, she added.
"This has been very upsetting for everyone involved," said Ms. Allen.
"CS STAR feels very bad about this and is working diligently" to recover the computer, working with law enforcement, with the FBI called in to investigate, and providing the affected individuals peace of mind over their credit, said Mr. Modugno.
CS STAR, he said, is providing claimants with free credit monitoring for a full year, $25,000 in identity-theft insurance, and a fraud representative to assist them. Individuals will also receive e-mail or text messaging alerts informing them when key changes take place in their credit report.
There will be no interruption in the payment of benefits and workers' comp claims, Ms. Allen stressed. She added that the files contained no personal financial information, such as credit card accounts or bank information, or medical information.
This was the first time the Special Funds Conservation Committee had used CS STAR, but she declined to comment on any future relationship.
Anyone with additional questions concerning the data is urged to call 866-361-1840, Ms. Allen said.
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