Protect Yourself Against Identity Theft
August 24, 2010 in Fraud & Scams, Privacy & Security
All across America, the fastest-growing white-collar crime has been identified as “identity theft.” It affects individuals and employers alike in insidious ways.Nearly 30 million cases in the last five years, 9.9 million last year alone; almost everyone knows someone who has been a victim. But there’s still the attitude that somehow it always happens to “the other guy.” But what if the “other guy” is your employee?
We’ve all heard of the problem, but few have recognized how theft of an employee’s identity can be devastating to an employer’s business. What are the potential costs to your business? They’re not obvious at first. You probably won’t write anybody a check directly, but consider the hidden costs of lost time, reduced productivity, lower morale and deteriorating quality.
The first thing you can do is learn more about identity theft. Here are some “myths:”
1. “My Credit Card Covers Me.”
Consumers think their credit cards cover an identity theft situation. Credit-card companies only cover their financial losses. The most a victim has to pay is $50, but the victim is still obligated to restore any damage to his/her name and/or credit rating.
2. “I Don’t Have a High Net Worth.”
The fact is that people with a high net worth do check their credit status more frequently because they make more purchases. No matter what your income level is or what a person’s net worth is, you can still become victimized.
3.”I Don’t Use the Internet.”
The reality is that if you have used the Internet just once, your information can be compromised. But that’s just one concern. We are all in a reactive posture because the information is out there-employer records, medical records, mortgage companies, insurance companies, financial institutions, credit-card companies, department stores, and the list goes on. Think about how many times you have given out your information over the past 10 years.
4. “The Credit Repositories Will Correct My Problem.”
The Credit Repositories are only responsible to correct the information that gets reported to them. It becomes the responsibility of the victim to ensure that his/her name and credit is corrected in an identity-theft incident.
Article provided to the La Quinta Chamber of Commerce – GEM Publication March 2006 page 14.
