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| Identity theft products in the workplace |
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| Anna Horton |
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4/27/2009 - It is no secrete that identity theft is on the rise. With the increase of personal information being housed in databases, it has become easier for opportunists to gain access to tens of thousands of individual’s information at once. In many instances, these occurrences are the result of a breach in an employer’s database.
Since businesses are now required to put policies in place in effort to manage information that is not meant for the public, many companies are being creative in their efforts to show their intent to be in compliance. One new trend in Northern California is offering identity theft insurance to their employees as part of their benefit package. In some instances, this is an employer paid benefit. However, in most instances, it is offered as an employee paid benefit. In both cases, should an employee decline the coverage, they must sign off that they refused the coverage. A copy of their refusal is kept in their file, and confirms the organization’s good faith.
How does this benefit the employer? For one, it shows their intent to comply with the new Federal Red Flag Rule. Secondly, should there be a breach of their employee database, the employees are already covered or have refused coverage. This decreases the amount of reaction time an organization will have to spend, once the breach is discovered. Hence, decreases the potential cost for damages.
Most identity theft products offer credit alerts through the credit bureaus, and some tack on additional services. One offers pre-paid legal services. However, if this service is offered by the employer, there is a clause written into the agreement that indicates that an employee cannot use the legal services against their employer.
One thing that many are not aware of is the fact that approximately 20% of identity theft damages include credit and financial damages. It is more likely for someone to use one’s stolen identity when being arrested or setting up utilities than making charges on someone’s credit. The financial effects of trying to correct the damages of any sort can be devastating.
In effort to take care of your business and employees, offering identity theft products is something to consider. There are plenty out there. It is not my intent to endorse any particular service, for there are so many to choose from. Take the time to research the services to make sure they can deliver what they advertise. Verify what it will take to be eligible for the warranty. Even the creator of Lifelock’s identy was stolen when he had his social security number on the side of a truck. So, is it really possible to prevent identity theft at his point? Those who want someone's identity, will find a way to get it. The focus should be on being prepared in 2009.
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