Identity Theft

If you're wondering whether or not someone can steal your identity, the answer is unequivocally yes — and quite easily, too. The question is, are you an easy target?

The Internet Fraud Complaint Center (IFCC), which tracks online-based consumer fraud statistics, estimates that 500,000 to 700,000 Americans fall victim to identity theft each year—a total of 27.3 million as of September 2003 (Federal Trade Commission). According to the FBI and the National Association of Attorneys General (NAAG), ID theft has become one of the nation's fastest-growing crimes. Consumers lost $17.8 million due to online fraud last year alone, and the IFCC notes that 70% of complainants had e-mail contact with the perpetrators.

The Federal Trade Commission (FTC) receives 3,400 complaints concerning identity theft per week. With numbers like these, it's not likely that each complaint can be investigated. Also, lack of laws and cooperation among foreign law-enforcement agencies make it extremely difficult to track and arrest perpetrators.

You need to take matters into your own hands. First, become educated and aware of the issues. Second, take proactive protective measures, such as:

• Never purchase e-mail-advertised products, and verify every transaction you make on the Web.
• Never respond to requests for personal information via e-mail.
• Beware of get-rich-quick schemes.
• Never pay "up front" for loans or credit.
• Refrain from replying to a spam e-mail at all — even to ask to be removed.
• Use an e-mail filter to help eliminate unwanted spam.

Not only individuals, but businesses, too, can be victims of identity fraud. One step to prevent liability is to know who you are hiring.

Identity Theft in Corporate America

• ID theft is an integral part of 30-40% of all corporate crimes


• Employers lose 72% of all negligent hiring suits


• Average jury plaintiff award continues to be in excess of $1,000,000

If a known felon is employed and later engages in identity fraud involving your customers or employees, the company can face liability including negligent hiring claims. In addition, companies are liable for negligently retaining an employee. For example, even if an employer performed a thorough background check and exercised appropriate care--if the employee acts improperly during the term of contract, then the company may be deemed negligent simply by retaining the employee.

How Companies should establish due diligence:

• Do you have a good reason for requesting the information you gather?


• What computer security measures have been placed for storing personal data?


• Is personal identifying information available only to limited staff?


• What is in company dumpster?


• Are personnel trained in the proper procedures regarding information disclosure?


• Are SSN displayed on membership cards, timecards, work schedules, licenses or permits and computer access codes?


• Update from background screenings to background investigations