[ISN] Capita 'unaware of ILA security breach'

From: InfoSec News (isnat_private)
Date: Thu Jan 17 2002 - 02:08:03 PST

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    CAPITA GROUP, the FTSE 100 IT services company, moved quickly
    yesterday to dismiss suggestions that a security breach within its
    computer systems had prompted the Government to shut down a £260
    million training programme abruptly.
    Capita said that it was unaware of any security breach of the
    Individual Learning Accounts (ILA) computer system, run by the
    company, which allowed members of the public to sign up for
    government-subsidised courses.
    Analysts gave warning, however, that allegations the system had been
    used to access confidential information could damage Capita's standing
    with the Government, the source of about 18 per cent of group
    Shares in Capita fell 21p to 434p yesterday.
    West Midlands Police and the National Audit Office are both conducting
    inquiries into the alleged breach of the ILA system, which is being
    wound down amid evidence of abuse and fraud.
    Capita said yesterday there was no evidence that its system had been
    hacked from outside but that legitimate users, members of the
    8,000-strong community of course providers, had accessed the system.
    A limited number of these users may have abused their authorised
    access and acted in an inappropriate manner, the company said. Such
    behaviour could be viewed as a breach of trust but not a breach of the
    One IT analyst said last night it was “too early to tell” whether the
    problems with the scheme would affect Capita’s long-term relationship
    with the Department for Education and Skills, which oversees the ILA
    scheme, and the rest of the Government.
    Last year Capita signed a £500 million contract, its biggest ever, to
    manage TV licensing for the BBC for the next ten years. The group has
    also been named preferred bidder for a £230 million contract to run
    the proposed road-charging scheme in London.
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