By DIANNE HARDISTY
Editorial Page Editor

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Breakfast. My husband was crunching his Cheerios, hogging The Californian. I was flipping through another newspaper, washing down Special K with black coffee, when I spotted the story.

So, Jack, did you get some ballot information from CalPers?

He recalled he had — a mailer in advance of a California Public Employees Retirement System board election.

Do you still have it? Go get it. I want to show you something.

Now? I’m reading. I’m eating.

Yes, I think you will want to see this.

He lumbered off to rummage through a desk in our home office, returning shortly with the mailer sent to about 500,000 retired government workers.

See anything you recognize above the mailing address?

He did. He wasn’t happy. He responded: “Those jerks.”

There for every mail handler and criminal dumpster diver to see was Jack’s Social Security number — a vital piece of everyone’s “financial identity,” a piece law enforcement agencies and banks tell us we must guard. Thieves armed with our Social Security number can rack up bills and clean out our bank accounts.

CalPers plastered retired California government employees’ Social Security numbers across the outside of mailers last week. It was yet another stunning example of bone-headed stupidity, or sheer indifference.

 The reason doesn’t matter. We  have seen reports of government agency laptop computers containing citizen’s Social Security numbers and other critical information going missing. There have been numerous breaches of security at the Veterans Administration, putting active and retired military personnel and their families at risk.

University computers have been entered, targeting students, alumni and faculty. Major department stores have jeopardized customers. And even financial institutions — the very ones who warn us to guard our Social Security numbers — have reported security lapses.

A television commercial shows a scruffy thief pawing through a trash can. We are warned to be vigilant. Shred sensitive documents before discarding them. Heck, why should a thief bother to get his fingers dirty in my trash can when government agencies and businesses are just handing out the information?

CalPers sent out a postcard apology to its members this week. Big deal! The postcard also contained “fraud alert” steps we can take if we “have any concerns.” 

CalPers spokesman Brad Pacheco explained a CalPers data file was given to a vendor who mailed out the election information. A computer accidentally lifted Social Security numbers from the data and added the numbers to the mailing labels.

So, Brad, did anyone get punished for this screw up?

“We’re taking an ‘enterprise strategic view,’” he responded.

Brad, I have no idea what you just said.

 With that, Brad launched into a more convoluted explanation. The bottom line: No one is being punished because so many are to blame. Security will be tightened, he promised, adding that security training has been ordered for the entire staff.

I am sure you would get the same gobblygook explanation from the VA or other agencies after they have jeopardized clients or customers. But this stuff keeps happening. What’s a person to do?

With 8 million identity theft cases reported a year at a cost of $5 billion to those victimized, one of the fastest growing segments of the insurance industry is identity theft coverage. Oddly some of the very agencies or corporations offering  coverage have had their own security breaches.

But while the coverage is relatively inexpensive, many financial experts contend it is a waste — policies are redundant and cover only limited costs.

But since we have less and less control over the security of our financial information, properly crafted identity theft insurance would be a prudent protection.

And like companies offering automobile insurance, identity theft insurance carriers likely would demand increased security steps be taken. The automobile insurance industry constantly lobbies for vehicles and highway travel to be safer. Wouldn’t it be nice if identity theft insurers pressured for increased security measures?

If identity theft insurance today is a consumer rip-off, California’s elected insurance commissioner should clean up the industry’s act.

“Golly, we’re sorry,” just isn’t cutting it anymore.

To respond to Editorial Page Editor Dianne Hardisty, e-mail dhardisty@bakersfield.com.