Secretary Nicholson and other officials testified about a recent security breach at the Department of Veterans Affairs in which computer records containing personal information of 26.5 million veterans were stolen from the home of a VA employee. Secretary Nicholson said the stolen information was not encrypted or “scrambled” and reiterated that there has been no indication that thieves were using the data to open credit card accounts, take out bank loans or engage in other forms of identity theft. Witnesses also testified about delays in notifying department officials, on-going problems with cybersecurity within the department, and proposed corrective measures.