In sweeping new measures designed to protect Americans, new identity theft laws may effect many businesses. Non-compliance with these laws could cost companies up to $1,000,000 in fines and up to 10 years in prison.
Serious new legal and financial liabilities have been created in the past few years by the Fair and Accurate Credit Transactions Act (FACTA), Health Insurance Portability and Accountability Act, and the Gramm, Leach, Bliley Act. Surveys show that 87 percent of business owners are not aware of FACTA, the most comprehensive legislation and its consequences. Even sole proprietors are at risk.
How is your identity theft I.Q.?
Do you know that failure to establish a defensive plan regarding identity theft could leave you exposed to class action lawsuits on behalf of both customers and employees?
Basic defensive steps, including maintaining a clean desk policy, properly erasing data from obsolete office equipment, shredding documents that have sensitive information when no longer needed, and removing sensitive information from e-mails wherever possible can make a difference.
In addition, companies need to appoint an information security officer, develop a written policy to protect non public information and personal health information, hold mandatory trainings for employees and have employees sign a confidentiality statement.
Potential civil and criminal penalties under the new laws apply to any business that collects personal information about customers or employees including names, financial data, birth dates and home addresses.
If an incident happens at your company, additional concerns are that employees can take up to 600 hours, mainly during business hours, to restore their identities. Twenty percent of an affected customer base will no longer do business with you, 40 percent will consider ending the relationship, and five percent will hire lawyers
In a new publication, the Federal Trace Commission highly recommends that all business owners develop a plan to create an affirmative defense to identity theft exposure. There are now services available to help business owners put a comprehensive plan in place. Creating an affirmative defense for your company can mitigate potential damages.
For more information contact Rod Taverna of Freedom Financial Solutions Inc. at (760) 631-4300.
Serious new legal and financial liabilities have been created in the past few years by the Fair and Accurate Credit Transactions Act (FACTA), Health Insurance Portability and Accountability Act, and the Gramm, Leach, Bliley Act. Surveys show that 87 percent of business owners are not aware of FACTA, the most comprehensive legislation and its consequences. Even sole proprietors are at risk.
How is your identity theft I.Q.?
Do you know that failure to establish a defensive plan regarding identity theft could leave you exposed to class action lawsuits on behalf of both customers and employees?
Basic defensive steps, including maintaining a clean desk policy, properly erasing data from obsolete office equipment, shredding documents that have sensitive information when no longer needed, and removing sensitive information from e-mails wherever possible can make a difference.
In addition, companies need to appoint an information security officer, develop a written policy to protect non public information and personal health information, hold mandatory trainings for employees and have employees sign a confidentiality statement.
Potential civil and criminal penalties under the new laws apply to any business that collects personal information about customers or employees including names, financial data, birth dates and home addresses.
If an incident happens at your company, additional concerns are that employees can take up to 600 hours, mainly during business hours, to restore their identities. Twenty percent of an affected customer base will no longer do business with you, 40 percent will consider ending the relationship, and five percent will hire lawyers
In a new publication, the Federal Trace Commission highly recommends that all business owners develop a plan to create an affirmative defense to identity theft exposure. There are now services available to help business owners put a comprehensive plan in place. Creating an affirmative defense for your company can mitigate potential damages.
For more information contact Rod Taverna of Freedom Financial Solutions Inc. at (760) 631-4300.