10/13/2003
Identity Theft Hurts Businesses
by Laura Miller, Business Consultant, ASU SBDC
Identity theft doesn't just affect consumers. Businesses are victims, too. Recent survey figures released by the Federal Trade Commission show that last year's identity theft losses to businesses and financial institutions totaled nearly $48 billion. While the amount varied depending on the form of identity theft, the average loss to business was $4,800.
Customers and employees often assume that businesses safeguard the personal information they collect. However, theft of records from employers or other businesses has beome the top cause of identity fraud. About 90% of business record thefts are reported to involve payroll or employment records.
Businesses must take measures to secure customer and employee records. Unfortunately, many do not take precautions until it is too late. Steps to safeguard records may include: thoroughly screening employees having access to confidential records; keeping all personal information in locked files; avoiding the use of voice mail, pagers, cell phones or email as a means to transmit personal information; shredding all documents containing personal information before discarding; installing and maintaining up-to-date security features on computers and encrypting personal informaton; screening all third party vendors, cleaning services, and temporary firms.
Visit www.ftc.gov and www.bbb.org for more information about protecting your business from identity theft and what to do if you are a victim.
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