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Is your business secure from identity theft?(The Star (Shelby, NC)(KRT) Via Acquire Media NewsEdge) Jul. 19--With the information age quickly progressing, identity theft has become an uphill battle for business owners and their clients. From credit cards to social security numbers, thieves are making good money selling information abroad. Unfortunately, these white-collar criminals are rarely found. "One to two percent of all perpetrators are caught," said Linda Kedy of Pre-Paid Legal Services. "Today it is so easy. All you need is a name and a social security number." Kedy hosted an identity theft informational session for local business owners on July 15 at the Walton County Chamber of Commerce. One of the main points of the session was to let business people know they are fully liable under the Federal Trade Commission if the stored information of their clients is breached (even when properly disposed of) and that they will soon be required to red-flag suspicious customers' information. "The consequences for business owners is absolutely huge," said Kedy. "People tend to think that is something that will happen to someone else." Kedy said there are five types of identity theft: drivers license, social security, medical, character criminal and fi nancial. "Your identity alone can be bought out for $25," she said. According to the FTC, under the Fair and Accurate Credit Transaction Act of 2005, a business is still accountable for losses even if it takes precautionary measures, such as the shredding of personal information. To further enhance accountability, the FTC passed a series of red flag laws in January that will require businesses (starting Nov. 1) to have up-to-date systems that alert them when someone is trying to use fraudulent information. For example, if a person is using a different birth date than that of their social security number when applying for a loan, a red fl ag should pop up on a computer system that alerts the business of possible fraud. Upgrading your computer system for better security requires updating both software and hardware, according to Cindy Karwacki. Karwacki, a senior account manager for the Merchant Services Network, said many times when she evaluates business clients' computers, she finds newer security software in place, but often the machines are out of date. "The equipment just isn't lasting as long as it used to because people are becoming so smart," she said. "I often advise people to rent." Dempsey B. Hammond Jr., of Asset Protection Strategies, said thieves have gotten so good with hacking technology, that many can acquire credit card information with a special device by standing a few feet from the victim. "The FTC knows you can't isolate yourself from identity theft," he said. "It's not a matter of if, it's a matter of when. "Once you get something on your credit history you are guilty until proven innocent," said Hammond. Many times identity is stolen from inside a company's walls. According to Kedy, 50 percent of all identity theft comes from inside the workplace. And if security is breached, the trust of the customer is often lowered. "If you experience a security break, 20 percent will no longer do business with you," she said. "It also costs an average of $92,000 per victim (to clear up the identity beach)." Kedy said there are a few things to help prevent your business from having a security crisis arise. Be cautious with how you share your information. You can no longer protect your information from being available, but you still should not make it any easier for people to acquire. Hire a service that will both monitor and store your information. Many times people have monitoring services, but can't give you back your identity once it is lost. Realize identity theft is not just about money. Your identity is much harder to recover than any fi nancial loss. Don't treat it like a wallet. To see more of The Walton Sun or to subscribe to the newspaper, go to http://www.waltonsun.com/. Copyright (c) 2008, Walton Sun, Santa Rosa Beach, Fla. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |