Company Identity Theft - Does Identity Theft Affect Your Company?

Employer’s headaches are on the rise as the epidemic of company identity theft continues to grow. "WHY", you ask. They are being held liable for identity theft that occurs in the workplace.

It is ok for you not to know the answer, but not knowing this answer has caused many headaches for employers for the past few years. Let’s start with the definition of identity theft. Misuse or fraudulent use of an individual's personal information.

The workplace is a goldmine for ID thieves. Unfortunately, for employers and for unsuspecting employees; personal data, such as social security and bank account numbers are housed in personnel files.

Most employers do not realize how they assist these thieves. Mishandling employees' personal information is the same as giving thieves the information directly. Over the past few years, employers have faced numerous lawsuits and penalties for their negligence.

One example that comes to mind is an employer that was sued for faxing employees’ personal information to members of management within the company!

Here are a few steps employers can take to protect the confidentiality of employees' personal information.

- Employers should write an ID theft reporting policy and communicate about it frequently to employees. Employees should be encouraged to report any ID theft crimes to a company security or operations chief.

- Carefully screen all employees who have access to personal data. Consider conducting background checks as well, when you hire new HR staff.

- Secure all personal data in locked cabinets. If the files are stored electronically, make certain that they can only be accessed by appropriate personnel. Use an electronic monitoring system, which allows employers to see who is attempting to access sensitive information.

- Never use social security numbers, as a reference number of any kind.

- Train employees about ID theft. Provide instruction on how to secure, handle and destroy appropriate files. Include information on protecting personal items and areas, such as purses, wallets and lockers.

The bottom line here: There is a possibility that an ID thief could be in your midst. The first step is to review and update your company's policies and procedures. Make sure your company is in accordance with state and federal law. Employers should also consider seeking legal advice to get in compliance.

Minimizing the employer’s liability is all you can do. When an ID thief strikes; unfortunately, they will more than likely be successful. There has been no cure for this epidemic; however, complying with federal laws will minimize your liability.

Due to ineffective prevention of these attacks, employers are not promised that compliance will prevent lawsuits but it will strengthen a company's position in any legal battle they face as a result of company identity theft.

Do you want to take the risk of being the next victim of the fastest growing crime? Would you like to have the best of the best when it comes to preventing company identity theft? They do not just give you a kit in the mail to do it yourself. You will have a licensed investigator assigned to you from the world’s leading risk consulting company assist you every step of the way, if you become a victim in any of the 5 areas of identity theft.

Company Identity Theft - Does Identity Theft Affect Your Company?
Company Identity Theft