Agents Find Fraud Ring at Credit Bureau : Crime: Sources say an employee at the TRW Credit Data Division gave sensitive information to outsiders, who used it to obtain merchandise.

U.S. Secret Service agents have uncovered a fraud ring that was funneling sensitive credit information out of the TRW Credit Data Division, one of the nation’s largest credit bureaus, authorities said Friday.

The investigation, conducted with the aid of TRW security personnel, is nearly complete, The Times has learned. Several sealed indictments have been obtained, according to the Secret Service, which investigates credit card fraud.

The ring reportedly involved a TRW employee who leaked information to a group of outsiders. They, in turn, used the information to fraudulently obtain merchandise and for other illegal purposes.

The misuse of credit card numbers and other sensitive personal data stored in TRW’s massive credit record database is believed to have gone on for a year or more at credit division headquarters in the city of Orange, sources said.

Secret Service and TRW officials confirmed that an investigation is under way, but they said they could not give any details until the indictments are unsealed. They gave no indication of when the indictments will be made public, nor would they comment on the scope of the fraud.

“There are sealed indictments, but we can give no further comment,” said Don Chacos, supervisor of the Secret Service fraud squad in Los Angeles. Chacos said the indictments are the result of a “long-term” investigation, but he would not be more specific.

The TRW employee whose conduct was under investigation has been terminated, authorities said.

“She was an employee at TRW but was terminated in May,” TRW spokeswoman Jennifer Sanchez replied when asked about the worker in question. “We have been working with the Secret Service, but we can’t comment on the case.”

Sanchez said the employee was hired at TRW in 1986 and worked in the consumer relations section, which handles consumer complaints and inquiries about credit records. Employees in that section handle such tasks as opening and sending mail, she said, and they have access to the millions of computerized financial records TRW keeps on individuals.

Although TRW is best known for its satellites and high-technology products, its credit division is one of the largest in the nation. The files contain the important elements of the financial histories of millions of consumers.

Bankers and merchants such as car dealers and furniture store sales representatives often purchase TRW data on prospective customers to see whether those people pay their bills and pay them on time. That information forms the basis for a decision whether to extend them more credit. The data includes outstanding mortgages and loans, bankruptcies, credit card numbers and individuals’ addresses, birth dates and Social Security numbers, according to TRW.

TRW and two other leading credit data banks have come under fire recently from consumer groups and Congress for lapses in securing their information from computer hackers, con artists and other prying outsiders.

TRW and other credit bureaus say they have taken steps to secure their databases but admit that their systems are not foolproof. With that in mind, the firms are seeking more severe federal penalties for illegal entry into their databases.

Sanchez said that TRW has a series of internal protections to prevent employees from being able to take advantage of their access to the database. The system can, for instance, discover whether employees are trying to alter their own records to remove negative information, she said.

Times staff writer Davan Maharaj contributed to this article.