TSA Suspends Verified Identity Pass, Inc. Clear® Registered Traveler Enrollment

WASHINGTON, DC–(EMWNews – August 4, 2008) – The Transportation Security Administration

(TSA) announced today that it is suspending Verified Identity Pass, Inc.

(VIP) — the company that operates Registered Traveler (RT) programs under

the brand name Clear® — from enrolling new applicants in RT due to

vulnerabilities discovered in the company’s storage of Clear® applicants’

sensitive personal information. The vulnerabilities came to light after an

unencrypted VIP laptop computer was discovered to be missing from San

Francisco International Airport (SFO) on July 26. The computer contained

pre-enrollment records of approximately 33,000 customers.

TSA has instructed SFO to ensure that VIP immediately notifies the

individuals impacted. In addition, SFO and all other airports using

Clear® have been instructed to ensure that VIP: suspends enrollment,

ceases use of any unencrypted computers and secures the devices until

encryption can be installed. TSA requires RT service providers and

sponsoring entities to encrypt all files containing participants’ sensitive

personal information. Noncompliance with such requirements can result in

actions including suspension of a program and possible civil penalties.

The suspension will protect consumers waiting to enroll in RT and allow VIP

to bring its procedures into compliance. VIP will be required to submit an

independent audit, verifying that the required security measures are in

place. TSA will verify the audits before enrollment procedures can resume.

Verified Identity Pass, Inc. will be responsible for notification and

resolution surrounding this incident.

Current Clear® customers will not be affected by this action and will not

experience any disruption when using Registered Traveler.

TSA is contacting all RT service providers to reaffirm proper security

measures are in place, including encryption of sensitive personal

information of participants. TSA remains committed to partnerships with

private sector entities that enhance the safety and convenience of the

flying public.