Is
Your Business At Risk?
by
Stephanie Rathgaber,
Identity Theft Shield/Pre Paid Legal Group Benefits
A company's name and brand can take years to build, yet only minutes to destroy. The risks that threaten businesses, their customers and employees are real—and growing. Chief among them is identity theft.
In recent years legislation has been passed to help protect consumers
from identity theft. Three major federal regulations are FACTA, GLBA,
and HIPPA. These laws hold businesses accountable for any information
they allow to fall into the hands of criminals. Lawsuits, stiff state
and federal fines, even criminal charges and jail time for executives
may accompany the bad publicity businesses receive in the event of an
information breach. It is critical for you to understand how privacy
laws pertain to your business. By complying with these laws, you can
help to protect your customers, your employees and your livelihood.
The devastating crime of identity theft is not just about credit cards.
If information is compromised, clients are at risk not only of financial
loss, but also medical, Social Security and driver's license
identity theft.
The identity theft of an owner or key manager can ruin a business. Many small business loans are backed by the personal guarantees of the owner, family members, or key partners. Banks that doubt your ability to repay a loan may demand payment in full, or deny you credit altogether.
A large percentage of recent security breaches have not been the result of hackers, but of employee (or former employee) theft, lost or stolen hardware, carelessness or simple mistakes.
As Betsy Broder, assistant director, FTC Div. of Privacy and Identity Protection, stated in the 2006 ABA journal "We will act against businesses that fail to protect their customer's data. We're not looking for a perfect system, but we need to see that you have taken reasonable steps to protect your customer's information." The government requires that you have in place four things: a privacy policy, someone to oversee your policy, employee training about identity theft; and a mitigation plan.
After you have identified any vulnerabilities your business has, immediately develop policies that minimize your risks. You may need to institute "clean desk" policies for example, informing your employees throughout the process of what you are doing and why.
Businesses can protect themselves and their employees through an identity theft protection program. By educating your employees about identity theft and making legal consultation and representation affordable and readily available, you can also reduce your liability as a business owner.
As the FTC states, it is almost impossible to be in business and not obtain personal identification information about your customers, employees, business partners, students or patients. With the right planning and protection, you can do your part to protect them all from America's fastest-growing crime—identity theft.
If you would like more information about writing your privacy policy or about a special program called The Affirmative Defense Response System (ADRS) and how you can provide your own ADRS for your company at no cost, contact Stephanie Rathgaber, Pre Paid Legal Independent Associate, ADRS Specialist; Group Benefits 949-887-9043. Legal and ID Theft Information: www.idtforbusiness.com/flash-replay/2117514