LexisNexis customer IDs
Reed Elsevier PLC
09 March 2005
News Release
Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV
9 March 2005
LexisNexis investigates compromised customer IDs and passwords to
Seisint US consumer data
Reed Elsevier today announced that LexisNexis, its global legal and business
information business, has identified a number of incidents of potentially
fraudulent access to information about US individuals at its recently acquired
Seisint unit. The incidents arose from the misappropriation by third parties of
IDs and passwords from legitimate customers. LexisNexis has notified law
enforcement authorities and is proactively assisting in law enforcement
investigations of these incidents. LexisNexis is also working with customers to
enhance security procedures.
These incidents were identified as part of an ongoing extensive review of the
verification, authorization and security procedures and policies across the risk
management businesses. LexisNexis has accelerated this review to determine the
extent of any other incidents.
Information on approximately 32,000 individuals may have been fraudulently
accessed in these incidents. LexisNexis very much regrets this and will be
notifying all the individuals concerned and providing them with ongoing credit
monitoring and practical support to ensure that any identity theft is quickly
detected and addressed. Any further instances that emerge from the ongoing
review will likewise be handled as quickly and as sensitively as possible. The
information accessed includes names, addresses, social security and drivers'
license numbers, but not credit history, medical records or financial
information.
LexisNexis has already taken, or will take actions to enhance security to enable
it to maintain its position as an industry leader in the responsible use of data
and the protection of individual privacy. These actions include: enhancing ID
and password administration procedures and requirements for customers;
dedicating additional resources to protection of consumer privacy; working with
customers to reinforce the importance of consumers' privacy; and working with
law enforcement for further insight and assistance on new practices and
techniques for thwarting criminal activities.
The financial implications are expected to be manageable within the context of
LexisNexis' overall growth. The demand for risk management solutions is
expected to remain strong and the outlook for Seisint and the LexisNexis risk
management business remains very positive. In relation to this, Reed Elsevier
today reaffirmed its 2005 and longer term financial targets of at least 5%
organic revenue growth and double digit adjusted earnings per share growth at
constant rates of exchange.
LexisNexis products that use US public and non-public records provide critical
fraud detection and identity authentication solutions to law enforcement,
homeland security, commercial and legal customers that help to safeguard
citizens and reduce consumers' financial losses, such as credit card and
insurance fraud. In addition, these services provide benefits for consumers in
facilitating the conduct of transactions for goods and services.
As a leader in the information services industry for over 30 years, LexisNexis
is fully committed to safeguarding public and non-public information about
individuals and consumers with effective verification, authorization and
security processes and policies, both by its businesses and customers.
LexisNexis will continue its long-time efforts to support effective data privacy
policy and practices that benefit consumers, the government agencies that serve
and protect them and the organizations they do business with.
Forward looking statements
This announcement contains forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements concern future
matters, such as the features and functions of, and markets for, products and
services offered by Reed Elsevier, and Reed Elsevier's business plans and
strategies. Forward-looking statements are based on the current expectations of
the management of Reed Elsevier and are subject to risks and uncertainties.
Actual results and events could differ materially from the results discussed in
the forward-looking statements. Factors which could cause or contribute to
differences in results include, but are not limited to, general economic
conditions and business conditions in Reed Elsevier's markets, customers'
acceptance of its products and services, the actions of competitors,
legislative, fiscal and regulatory developments, changes in law and legal
interpretation affecting Reed Elsevier's intellectual property rights, and the
impact of technological change. Reed Elsevier is not under any obligation (and
expressly disclaims any such obligation) to update or alter its forward-looking
statements whether as a result of new information, future events or otherwise.
Notes to Editors
LexisNexis is a global leader in comprehensive and authoritative legal, news and
business information and tailored applications. A member of the Reed Elsevier
Group plc, the company does business in 100 countries with 13,500 employees
worldwide. In addition to its flagship web-based Lexis(R) and Nexis(R) research
services, the company includes some of the world's most respected legal
publishers such as Martindale-Hubbell, Matthew Bender, Butterworths,
JurisClasseur, Abeledo-Perrot and Orac.
Reed Elsevier Group plc is a world leading publisher and information provider.
It is owned equally by its two parent companies, Reed Elsevier PLC and Reed
Elsevier NV. The parent companies are listed on the London, Amsterdam and New
York Stock Exchanges, under the following ticker symbols: London: REL;
Amsterdam: REN; New York: RUK and ENL. In 2004, Reed Elsevier made adjusted
profit before taxation of £1,027 million/€1,510 million on turnover of £4,812
million/€7,074 million. The group employs 35,600 people, including
approximately 22,000 in North America. Operating in the scientific, legal,
educational and business-to-business sectors, Reed Elsevier provides high value
and flexible information solutions to professional end users, with increasing
emphasis on internet delivery.
-Ends-
For further information please contact :
Catherine May : +44 (0)20 7166 5657 (European media)
Sean McCabe : + 1 703 683 5004 ext. 110 (north American media)
Sybella Stanley: +44 (0)20 7166 5630 (investors)
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