VA Working to Prevent Future Information Loss

"I've formed a task force ... to examine comprehensively all of our information security programs and policies to bring about a change in the way we do business," R. James Nicholson said.

His testimony today followed the May 22 announcement that a Veterans Affairs employee had taken electronic data home with him, though he was unauthorized to do so. The information was stolen when his house was burglarized May 3, though Nicholson was not made aware of the loss until May 16.

The employee has been placed on administrative leave pending the outcome of a full-scale investigation, Nicholson said.

To prevent a recurrence, Nicholson told the committee he has initiated an immediate review all current positions requiring access to sensitive data. Those who need that access will be required to undergo updated law enforcement and background checks.

Employees also must complete cybersecurity awareness training and general privacy awareness courses by June 30. Nicholson said they will then be required to sign an annual statement indicating they are aware of the Privacy Act and the proper use of government property.

"I promise you that we will do everything in our power to structure a policy and a regulatory regimen that make clear what is proper use of data by our employees," he said. "We will train employees in these policies and enforce them."

Nicholson has directed the department's information and technology office to revise the security guidelines for single-user remote access developed by the office of cyber and information security. The document, to be completed by June 30, will set the standards for access, use and information security, he said.

The department also has taken extensive steps to notify and protect the affected veterans, he said. They will be notified by individual letter, Nicholson said during the May 22 announcement.

The data stolen from the employees' home contained the names and birth dates of 26.5 million veterans and some spouses, as well as Social Security numbers for 19.6 million veterans, he told the committee today. Also, some data lost could include numerical disability ratings and the diagnostic codes identifying disabilities being compensated.

"It is important to note that the data did not include any of the VA's electronic health records," Nicholson said. "Neither did it contain explicit financial information, although knowing a disability rating could enable one to compute what the implied terms of compensation payments are."

The VA also is working with the three major credit bureaus, and all three -- Equifax, Experian and TransUnion -- have simplified the process for veterans requesting a fraud alert.

Concerned veterans also can get more information by calling 800-333-4636 from 8 a.m. to 9 p.m. EDT, Monday through Saturday to reach the manned call center. They can also visit the www.firstgov.gov.

The Federal Trade Commission is encouraging veterans to report suspected incidents of identity theft via the commission's identity-theft hotline at 877-438-4338. Banks also have received an advisory from the Office of the Comptroller of the Currency.

"It explains what happened and asks the banks to exercise extra diligence in processing veterans' payments," Nicholson said. "The advisory also reminds the banks of their legal obligations to verify the identities of persons seeking to open new accounts."

The secretary added that VA would be working very closely with the president's Identity Theft Task Force on this issue.

"VA's mission to serve and honor our nation's veterans is one we take seriously, and the 235,000 dedicated VA employees are deeply saddened by any concern or anxiety this incident is causing our veterans and their families," he said. "We're working hard to keep this most unfortunate circumstance from causing them undue pain and anxiety."

Bush Welcomes Coast Guard Commandant, Cites Service's Contributions

 

Incoming Coast Guard Commandant Adm. Thad W. Allen told the audience at his change of command ceremony May 25 that his service's "challenge is to attack each day, each task, with a purpose grounded in who we are, what we have been, and what we must become." The ceremony took place at Fort McNair in Washington, D.C. Photo by Staff Sgt. D. Myles Cullen, USAF   (Click photo for screen-resolution image);high-resolution image available.

"The Coast Guard is vital to our nation's security, and the American people are grateful to stand behind your shield of freedom," Bush said at the change of command ceremony at Fort McNair. "The Coast Guard is also the world's premier lifesaving service, and the whole world saw your skill and bravery during the hurricanes last year."

Today's ceremony marked the change of command of the Coast Guard from Adm. Thomas H. Collins to Adm. Thad W. Allen. Collins, who led the Coast Guard through its transformation to support the war on terror, is retiring after 38 years of service.

"Admiral Collins has led the men and women of this service with honor and respect and devotion to duty," Bush said.

Allen, who most recently was chief of staff for the Coast Guard, is perhaps best known for his service as the principal federal official overseeing Hurricane Katrina response and recovery efforts. Bush said that in that position, it didn't take long for Allen's integrity and leadership ability to become evident.

"I knew I could count on Admiral Allen to give me candid judgment," Bush said. "I relied on his steady nerves and his presence of mind in trying conditions. I was impressed by his compassion and his determination to help those who had lost so much."

In honor of the Coast Guard's service during Katrina, Bush presented the Coast Guard with the Presidential Unit Citation.

"The Coast Guard performed with courage and distinction. And your response to Hurricane Katrina will go down as one of the finest hours in the Coast Guard's 216-year history," he said.

One of Allen's most important tasks as he assumes the duties of commandant will be to ensure the federal government is ready for this year's hurricane season, Bush said. The government is determined to learn the lessons of Katrina, and is doing everything possible to be ready for more storms, he said.

The Department of Homeland Security has reviewed emergency plans for all 50 states and America's 75 largest cities, he said. The department is working closely with communities to identify any weaknesses in their plans and to find ways to improve them, he added.

In his farewell speech, Collins said he has seen the Coast Guard transform and evolve over the years. Since Sept. 11, 2001, the Coast Guard has had to shoulder new responsibilities and transform the way it operates, while still maintaining its traditional missions, he said.

"In the face of this and other challenges, the Coast Guard has done extraordinary things - things above and beyond day-to-day operations -- to ensure greater security and safety for our nation now and into the future," he said.

In everything the Coast Guard does, whether in support of the war on terror or humanitarian relief operations at home, the force strives for mission excellence, Allen said after accepting his orders as the 23rd commandant. He pledged to provide the members of the Coast Guard with the best equipment available, and said that his service will strengthen its partnerships with the Department of Homeland Security and other federal agencies.

"Our challenge is to attack each day, each task, with a purpose grounded in who we are, what we have been, and what we must become," Allen said.