Businesses need to prepare for the reality of Identity Theft. Waiting until it occurs at your company to "do something" can be financially devastating under the FACTA law. One solution is surprisingly simple, offer the Identity Theft Shield.
(PRWEB) October 27, 2005
Will your business survive identity theft under the FACTA Law?
This is a question that many business owners should be asking themselves. However most have never heard of the FACTA Law, let alone the new FACTA Law provisions.
Unfortunately our normal human nature of waiting until the storm arrives to seek shelter may be the downfall for many companies.
Identity theft is a reality in our current environment and businesses now have financial liability under the new FACTA Law provisions that could destroy their financial foundation. It is estimated by the Federal Trade Commission (FTC) that an identity is stolen every 3.2 seconds, 24 hours a day, 7 days a week...literally non-stop. What are the new FACTA law provisions?
On June 1, 2005, a new provision of FACTA went into effect. This new provision of the Facta Law says that any employer (even if you only employ one person) whose action or inaction results in the loss of employee or customer information, can be fined by federal and state government, and sued in civil court.
'With unlimited statutory damages [under FACTA] this is a litigator's dream,' says Thomas Hefferon, Partner at Goodwin Proctor LLP. Unfortunately, a litigators dream can be your nightmare.
However, you can protect yourself. The great thing about it is that you can improve employee moral and loyalty at the same time. How? By giving your employees access to protection in an area that they are most concerned with, Identity Theft. Recent data suggest that most employees are more concerned with Identity Theft than being laid off. In addition, if it does happen to your employees, it is you, the business manager that will endure the drop in productivity. On average, a person will spend 600 hours attempting to restore their name. When do you think that these efforts are taking place? It is taking place during working hours, your time and your money. Unfortunately, when Identity Theft happens to someone, they tell others and the loss in productivity is then multiplied. With the new provisions of the Facta Law, you could actually be financially responsible if the compromise of information takes place at your company. "It's too easy to get to data no matter what the key is, from insiders or hackers or mistakes," said Jody Westby, head of the security and privacy practice at PricewaterhouseCoopers LLP. "What we have to do is make it harder to use the data." APS will help make your information "harder to use". We make it easy for you; we present to your managers, and your employees, and give them the information they need to make a choice. When they choose to protect themselves, they also choose to protect you.