Employers Face Greater Liability for Workplace Identify Theft

It is estimated that more than 50% of all identity theft occurs in the workplace. Employers can be held liable for all types of identity theft that can be traced back to the mishandling of personally identifying information maintained on employees, applicants, clients and vendors. The FTC Red Flags Rules were established to ensure that information security is a priority for every business in America.

There are multiple types of ID theft; here are a few that can occur in the workplace:

1. Driver’s License – A thief can get a license in your name and represent them selves as you during a traffic stop. If you are later involved in a traffic stop and the thief has committed traffic violations or other crimes in your name, you could be arrested on the spot.

2. Social Security – Some one could get a job in your name, not pay taxes or receive your income tax refund. The IRS and the Social Security Administration rarely talk to one another.

3. Medical ID theft – This is the fastest growing type of ID theft. Criminals obtain you health insurance info or social security number and receive health care under your name. Your medical history could contain medical information belonging to another, resulting in life threatening mistakes.

Identity theft is the fastest growing crime in the U.S. and around the world. Above are only a few types of theft. What can you do?

Under the FTC Red Flags Rules you are required to:

Develop a written data protection plan.
Develop a notification plan in the event of a breach.
Appoint a privacy officer.
Provide training for employees who have access.
Consider offering identity theft protection as an employee benefit.

For FTC Red Flags Rules or employment law compliance assistance, please feel free to contact The Whitford Group for a free risk analysis. Find out what you should be doing to protect your company from unnecessary financial loss.

TheWhitfordGroup@aol.com www.TheWhitfordGroup.com