UPDATE 1-U.S. agency error exposes 2.3 mln disaster survivors to fraud -watchdog

The U.S. Federal Emergency Management Agency (FEMA) exposed 2.3 million disaster survivors to possible identity theft and fraud by sharing sensitive personal information with an outside company, according to an internal government watchdog. The U.S. Department of Homeland Security's Office of Inspector General said FEMA had shared financial records and other sensitive information of people who had participated in an emergency shelter program after being displaced by hurricanes Harvey, Irma and Maria and the California wildfires in 2017.

In a statement released on Friday, FEMA spokeswoman Lizzie Litzow said the agency had found no indication to suggest survivor data had been "compromised." She said the agency has removed unnecessary information from the contractor's computer systems. The Inspector General's office said FEMA had shared participants' home addresses and bank account information with the contractor, along with necessary information like their names and birthdates.

That "has placed approximately 2.3 million disaster survivors at increased risk of identity theft and fraud," the Inspector General's office said in a report. The name of the contactor was redacted. (Reporting by Andy Sullivan; Editing by Sandra Maler and Diane Craft)