In Age of Security, Firm Mines Wealth Of Personal Data

It began in 1997 as a company that sold credit data to the insurance industry. But over the next seven years, as it acquired dozens of other companies, Alpharetta, Ga.-based ChoicePoint Inc. became an all-purpose commercial source of personal information about Americans, with billions of details about their homes, cars, relatives, criminal records and other aspects of their lives. As its dossier grew, so did the number of ChoicePoint's government and corporate clients, jumping from 1,000 to more than 50,000 today. Company stock once worth about $500 million ballooned to $4.1 billion. Now the little-known information industry giant is transforming itself into a private intelligence service for national security and law enforcement tasks. It is snapping up a host of companies, some of them in the Washington area, that produce sophisticated computer tools for analyzing and sharing records in ChoicePoint's immense storehouses. In financial papers, the company itself says it provides "actionable intelligence." "We do act as an intelligence agency, gathering data, applying analytics," said company vice president James A. Zimbardi. ChoicePoint and other private companies increasingly occupy a special place in homeland security and crime-fighting efforts, in part because they can compile information and use it in ways government officials sometimes cannot because of privacy and information laws. ChoicePoint renewed and expanded a contract with the Justice Department in the fall of 2001. Attorney General John D. Ashcroft and other government authorities have said these new tools are essential to national security. But activists for civil liberties and privacy, and some lawmakers, say current laws are inadequate to ensure that businesses and government agencies do not abuse the growing power to examine the activities of criminals and the innocent alike. [more]