on Aug 31st, 2010Identity theft to businesses
Identity theft to businesses
More than half of all the identity thefts take place in business related settings. Because of the alarming rates of identity theft especially in business, training on privacy as well as security of nonpublic personal information to all employees is now a requirement by law that makes it mandatory to implement procedures, policies, and measures that will make sure identity theft is brought under control by all means. Substantial penalties will be passed onto those who violate or who are noncompliant to the new laws. The misuse of business or personal identifiers by an imposter for their own advantage, be it financial or non-financial and at times both, is what identity theft is all about. The identity thieves use business identifiers such as the federal Tax ID of the business, the business account details, the business name, business indicia, as well as personal identifiers of the business employees which can be used to authenticate the business identity to their advantage that could lead to either financial or nonfinancial misuse of the business. Most of the identity theft crimes committed by use of Federal identifier or a name can go undetected for a long time, that even the best businessman or individual could take months if not years to realize the crime. The most common identity theft crime known to the public is the misuse of a credit card to commit existing account fraud. However, establishing new finances in the victims name is one of the most devastating identity theft crimes that could leave the victim with severe consequences, not only to themselves but to their employers as well as their families. Victims of identity theft not only suffer financial losses but also extreme emotional stress, and spend as much as 600 hours trying to resolve the situation not to mention spending over 1,500 dollars in expenses excluding legal fees. Businesses are more vulnerable to identity theft when their clients, customers or employees get victimized. The identity theft could also lead to misuse of the business identity that could lead to security breach, financial or legal consequences. When a business employee becomes a victim of identity theft, there is a risk of public credibility, and serious impact on the financial and general income of the business. Identity theft in business has more severe consequences that could lead to civil law suits, loss of business, loss of work time as well as facing fines. As a result of the prevalent identity theft in places of business, most of the businessmen are now offering identity theft insurance to their customers as well as employees as a counter measure that is able to help them guard against identity theft of their employees, as well as their business. ?
