Business Buzz
Identity theft comes to work
by Carole Worley and John P. Gardner, Jr.
Identity theft is a real and growing problem, and records at all businesses are a fertile source of information that criminals target. According to some sources, 70 percent of identity theft occurs at work.
The problem is that identity thieves steal information from employers, sometimes bribing employees for access to the information. They also obtain information by hacing into computers (nearly 50 percent of all small businesses report being victims of cyber crimes themselves), sifting through trash, stealing credit or debit card numbers, stealing mail (such as pre-approved credit card offers and new checks) and using "change of address" forms to divert certain mail to another location.
Because of recent ads and commercials, many people ID theft is limited to someone stealing credit card information and that there is no real potential for individual loss. Nothing could be further from the truth. Criminals use stolen information to open credit card and bank accounts, counterfeit checks and cards, borrow money, establish phone service in your name, purchase cars or other goods borrow on your home, obtain government benefits in your name and so forth. Depending on the law applicable, you might owe the debt incurred by someone else if you don’t notify the bank or business that extended the credit "immediately," "within 60 days," or within a "reasonable period." The average person doesn’t even discover an identity theft for 14 months!
As a business owner or an individual, what should you do? First, understand that job applications, insurance applications, employee benefit records and other personnel documents can contain Social Security numbers, birth dates, bank account numbers and other sensitive data that an ID theif would want. Second, limit the collection of Social Security numbers, driver’s license numbers and so forth to only what is absolutely necessary, as the disclosure of these could expose you or your company to debilitating litigation. Additionally, control who has access to this information through passwords or other security measures on computers and through lock and key on paper files.
Thoroughly educate your employees on the dangers of ID theft. You and your staff should shred, shred, shred all documents to be discarded. Don’t merely throw away anything that could be used against you, a customer or a client. Obviously, information about credit or debit cards must be secured.
Carole Worley is an independent associate with Pre-Paid Legal Services, Inc., a 32-year-old company, publicly traded on the NYSE, specializing in identity theft and legal services nationwide.
John P. Gardner, Jr., is a third-generation attorney in South Carolina with 25 years' practice as a criminal attorney, eight years' experience in the S. C. General Assembly and four years service as a state highway commissioner. He also co-authored Chicken Soup for the Entrpreneurial Soul.
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