| Identity theft has become a national problem of | | | | Pandemic", Michael Freidenberg, May 15th, 2006 |
| enormous proportions. According to the Federal Trade | | | | reports, "When it comes to cleaning up this mess, |
| Commission (FTC), nearly 10 million people fall victims | | | | companies on average spend 1,600 work hours per |
| to identity theft annually, costing customers $5 billion in | | | | incident at a cost of $40,000 to $92,000 per victim." |
| out-of pocket losses and businesses $48 Billion . | | | | So, it is highly recommended by Atty. Kirk J. Nahra, |
| This rise in identity theft is presenting employers with | | | | partner with Wiley Rein & Fielding L.L.P. in |
| major headaches because they are now liable for | | | | Washington, D.C., leading expert in privacy and |
| identity theft/breaches that occur in their workplace. | | | | information security litigation and counseling for |
| As of January 2005 to March 2008, there has been | | | | companies facing compliance obligations in this country, |
| reported to the FTC over 223 million data records of | | | | states in his "White Paper" report, that companies |
| U.S. residents have been exposed due to security | | | | needs to implement a security system that is |
| breaches. This information, can be viewed at | | | | continually monitored, as well as, have a service that |
| PrivacyRights.org. So, all businesses, corporations, | | | | will handle RESTORATION and MITIGATION for it's |
| schools, financial institutions and hospitals should be | | | | employees and customers. Having a service that |
| concerned about Identity Theft, Identity Theft Red | | | | provides FULL restoration and mitigation would help |
| Flags Rule, FACTA, HIPAA, and GLB Safeguard Rules | | | | reduce liabilities and class action lawsuits against their |
| in how they will impact their organizations. If not, the | | | | organization. |
| organization may NOT be in compliance with the new | | | | Mike McCoy, Director of the Identity Theft Institute, |
| Federal and State Laws and modified regulations. | | | | international expert and co-author of "Who is You? |
| The liability, both civil and criminal for businesses for | | | | The Coming Epidemic of Identity Theft" and the author |
| non-compliance can result in fines up to $1,000,000 per | | | | of "The Silent Crime, What You Need to Know About |
| occurrence, 10 years imprisonment for executives, | | | | Identity Theft", states "identity theft is on the rise and |
| removal of management and employees, and class | | | | the worst has not come yet." So the best two |
| action lawsuits with NO statutory limitation to name just | | | | recommendations, an institution can do to limit identity |
| a few. | | | | theft exposure and losses are to train employees on |
| There are Five Common Types of Identity Theft: | | | | identity theft and to offer the best Identity Theft |
| Drivers License identity theft, Social Security identity | | | | Protection & Restoration service to employees |
| theft, Medical identity theft, Character/Criminal identity | | | | and/or customers. The service that he endorses, as |
| theft, and Financial/Credit identity theft. But, most | | | | the best voluntary benefit service for employees and |
| employers and individuals think it is just about Credit | | | | or your customers, can be viewed at |
| Cards fraud or theft. Criminals are stealing Non-Public | | | | The time is now, for all institutions in America to put a |
| Information (NPI) in all 5 areas! Just imagine your | | | | "sense of urgency" into instituting a "Culture of |
| medical information file has been stolen, leading to | | | | Security", as stated by The Federal Trade |
| medical bills from hospitals you NEVER visited and | | | | Commission, within their establishments to help reduce |
| receive treatment. Or your social security number was | | | | and prevent identity theft in the workplace. While |
| stolen, resulting in the IRS department seeking payment | | | | identity theft & breaches will never be stopped, |
| of taxes due from businesses you NEVER owned. Or | | | | but it can be reduced, as well as liability exposures! By |
| your driver license number has been stolen, resulting in | | | | implementing the proper security systems, employee |
| the Police Department arresting you for tickets that | | | | training, documentation, and continual monitoring of the |
| you NEVER knew about. Or new credit accounts | | | | effectiveness of your Identity Theft Prevention |
| (mortgages, credit cards, and loans) were opened in | | | | Program, is a pro-active position in addressing this |
| your name, but you NEVER applied for them and now | | | | major crisis. Small to Mid size institutions should be |
| you are liable for all debts after 60 days by federal | | | | especially concern, due to the enormous cost from |
| law! These are just a few of real live identity theft | | | | liabilities and class-action law suits, and the impact on |
| cases occurring throughout America. All due to identity | | | | their business. Reducing liabilities, will be one of the |
| theft and breaches! What do you think September 11, | | | | keys to success for businesses today and in the |
| the attack on our Twin Towers in New York...identity | | | | future. |
| theft. | | | | It is advised, for members of a Board of Directors, |
| Today, business needs to rapidly education | | | | Presidents, and Senior Level Executives/Managers of |
| themselves (and consumers alike) on this national | | | | their institutions, to consult with an attorney concerning |
| problem and be open-minded to possible solutions that | | | | these laws, compliance standards for their industry, |
| can implement into their organizations to become more | | | | and how they apply to their institution. |
| compliant. Based on CIO Magazine, "The Coming | | | | |