Identity Theft: what employers want to know
by Veronica A. Jenkins
Companies are losing customer and employee information by the truckload every day. Nearly 90 million data records of U. S. residents have been exposed due to security breaches. Laptops are lost, obsolete computers donated with sensitive information, hackers break into networks, and sometimes employees steal personal information.
The New Law
The New Jersey Identity Theft Prevention Act was signed into law on January 1, 2006. This Act requires businesses in NJ to safeguard personal information related to any individual, including customers and employees.
The Act requires that companies “take all reasonable measures to protect against unauthorized access to or use of personal information.”
According to USA Today, the average dollar amount charged in identity theft is $92,000. The Identity Theft Resource Center, a non-profit that researches and supports victims of identity theft crimes, reports that it takes on average 600 hours to clean-up the mess, if one ever does.
An information breach is a possibility for every employer. It is not a typical insurance issue because identity theft is not a typical crime. It presents itself in the following ways: Financial/ Credit, Division of Motor Vehicle, Social Security Number, Medical Information and Character/Criminal.
How to protect your company, customers and employees
Securely store and destroy personal information - Prevention is the key.
Train employees on your new or updated policies and procedures and educate them on Identity Theft.
Define a process in case of a breach - No process is 100% effective, so plan for a breach. Define how you will notify customers, determine what data was breached, address the media and deal with legal issues.
Make Identity Theft Protection available to your employees (and customers) – this can reduce your company’s liabilities against actual losses suffered and lawsuits from those affected. Look for a service that helps your employees or clients restore their credit histories.
Understand the breach notification policies of your vendors and suppliers - Ask for their policies in writing.
Perform an internal audit - Review and update company policies.
Appoint an Information Security Officer who can assist with the above.
Continually, investigate ways to minimize a breach and your company’s liability in this event.
Veronica A. Jenkins is an Area Coordinator for Pre-Paid Legal Services, Inc., specializing in Identity Theft solutions and education.
Submit questions regarding this article to
vjenkins@prepaidlegal.com.
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