Texas Guaranteed Student Loan Data Breach (2006)

About 1.3 million customers of a Texas provider of student loans are at risk of ID fraud, after a contractor lost computer equipment with sensitive information on them. The equipment, which was not identified, contains the names and Social Security numbers of the borrowers, the Texas Guaranteed Student Loan company said in a statement Tuesday. The hardware was lost by an employee of Hummingbird, a enterprise software company hired to prepare a document management system, it said. The information was prepared by the loan company in January for use by Hummingbird. The data was encrypted and password-protected, but subsequently decrypted and stored on the now-lost hardware by the Hummingbird employee, Texas Guaranteed Student Loan said. However, the lost hardware does require a password for access. The equipment was lost on May 24, and Texas Guaranteed Student Loan was notified by Hummingbird two days later, according to the financial institution's statement.