Identity Thief at Work

Identity theft is a societal problem and can occur in many places and by many means, including in the workplace. At work, it can happen by stealing vital information from employer's records. These records can be payroll and employment information and even customer lists. And those employees that can obtain these records can sometimes be at the very bottom of the totem pole.
Whether we're an individual working for a company or we are the company owner, we need to be aware of this growing trend and what we can do about it.On a large scale, if a big company is affected, it can result in negative publicity which would in turn affect sales, hiring and retention.

What can we, as an individual, do about this growing trend? We probably already know the obvious: shed documents with personal information, don't carry our social security card in our wallets, have locked mailboxes, and even monitor our credit reports. But the problem -- which seems to be beyond our control -- lies in crooks who obtain this information from businesses that have collected personal information for legitimate reasons and then they sell this information to more crooks that use it and steal our identity. And then with this new identity, thieves can open new credit card accounts, apply for loans, write bad checks, rent apartments and the list goes on. Individuals who have been educated on identity theft or who have had this occur in their life will scrutinize those companies that have their personal information. Because of the bad seeds, companies need to raise the bar both for their employees and clients.

So if we're looking at identity fraud from a business owner perspective, what can we do about it? Informed employees and clients know that their personal information is only as safe as the association protecting it. A solution would be to offer identity theft protection as a benefit, much like health insurance. This offer would be unique to the company, whether the company pays for part of it, all of it, or merely provides the information of how to obtain this protection. The key is in the offering so employees/clients are aware of their choices and can then make an educated decision whether to accept or decline. Too much cost, we may think. But actually, it can lower our costs whether the employee has coverage or not. With coverage, there will be less time spent in restoring their identity. Without coverage, our liability has changed. We've done all in our power to protect our employees by informing and offering. Well almost . . . There are still numerous ways where we must be proactive in protecting our employees and clients.

1. Perform background checks on employees who have access to personal information on other employees/clients, even temporary workers. And limit this access where we can.




2. Use employee identification numbers that are different to social security numbers to recognize employees on paychecks etc.




3. Shred confidential documents and have specific guidelines for all employees to adhere to.




4. Use passwords and encrypted codes when confidential files are stored on the computer.




5. Be vigilant in educating staff on identity theft.

The Bank of New York and its employees are a perfect example of a workplace where large scale identity fraud has occurred. Adeniyi Adeyemi, a computer technician employed by a contractor who worked for the Bank of New York, has been charged with allegedly stealing the identities of over 150 employees and then with these identities, stealing over a million dollars from non-profit groups and charities and the employees themselves. Adeyemi now faces up to 25 years in prison. He obtained his information from the Technology department, opening additional bank accounts with this information to receive the stolen money. This all occurred over a seven and a half year period. The Bank of New York spokesman says that they are fully cooperating, but I wonder what the long-term ramifications of this will be (Read the Wall Street Journal article here).

It's always best to be insightful. But having insight is useless unless we take action by protecting ourselves, our employees and our company with our eyes wide open.

Red Flag Enforcement Delayed Fourth Time (until June 1, 2010)

The enforcement of the Red Flags rule under the Fair and Accurate Credit Transactions Act (FACTA) has been delayed again for the fourth time. The next implementation date is June 1, 2010. The enforcement was due to take place yesterday November 1st, 2009.

It is clear that many businesses are having difficulty getting ready for Red Flags as evidenced by the fourth delay. Many businesses falsely assume that if they are not a bank nor a credit card company, they are not subject to FACTA or Red Flags. Such is not the case. FACTA and Red Flags apply to most businesses.

The delay is good for businesses as many need additional time to get systems and procedures in order, but not good for consumers (whose identities may still be exposed for fraud for another 6 months).