Untitled
Identity Theft Business Solutions
Simply put, if data aiding an identity theft originates from a security breach at your company, you could be sued, fined, or become a defendant in a class-action lawsuit by affected employees whose personal information has somehow gotten out.
 

Wiley Rein, LLP - What's Ahead for Privacy and Security in 2009? (pdf)


"Fair Credit Reporting Act (FCRA)"

If an employer obtains, requests or utilizes consumer reports or investigative consumer reports for purposes/background screening, then the employer is subject to FCRA requirements.  
http://www.ftc.gov/os/statutes/031224fcra.pdf  

"Fair and Accurate Credit Reporting Act (FACTA)"

The Fair and Accurate Credit Transactions Act of 2003, PubL. 108-159, 117 Stat. 1952 (FACT Act" or "Act") was signed into law on December 4, 2003. In part, the Act amends the Fair Credit Reporting Act ("FCRA"), 15 U.S.C. 1681 et seq.

Identity Theft "Fair and Accurate Credit Reporting Act" FACTAIn an effort to help fight what has become the fastest-growing crime in the U.S. – identity theft - Congress added new sections to the federal Fair Credit Reporting Act (FCRA) when it passed FACTA – The Fair and Accurate Credit Transactions Act of 2003. Privacy, limits on information sharing, new consumer rights to disclosure and accuracy are all addressed.

However, these new provisions also create serious new responsibilities – and potential liabilities – for businesses nationwide. Simply put, if data aiding an identity theft originates from a security breach at your company, you could be sued, fined, or become a defendant in a class-action lawsuit by affected employees whose personal information has somehow gotten out.

Ready or not, it’s time to get familiar with FACTA, and develop a reasonable plan to reduce and mitigate potential risks as much as possible.

Identity Theft "Fair and Accurate Credit Reporting Act" FACTAThe Federal Trade Commission (FTC) has created a new Division of Privacy and Identity Protection to focus on aggressive enforcement of identity theft cases. In order to comply with FACTA, Betsy Broder, the Assistant Director of that FTC division, was quoted in the March 2006 American Bar Association Journal saying, that means businesses need to have a written plan describing how customer data will be safeguarded and a staff member or company officer designated to be responsible for implementing that plan. Broder went on to say, “We’re not looking for a perfect system. But we need to see that you’ve taken responsible steps to protect your customers’ information.”

Broder says she understands that small businesses cannot be expected to hire a full-time privacy specialist, but added that all businesses must be able to show that they have a security plan in place.

According to the FTC, a “reasonable” plan to safeguard personal information includes:
        - Appoint or Re-Appoint an "Information Security Officer(s)
        - Develop a written "Sensitive Information Policy"
        - Train your employees (Create a Culture of Security)
        - Create an "Identity Theft Mitigation Program" - This mitigation plan should kick    
                in when there is a privacy or security breach and there is a need to “repair it”  
                immediately in the eyes of customers, government regulators, and management.

A sensible and effective program will go a long way towards reducing the risk of federal government enforcement, even if the security policy should fail in a particular situation and a security breach results.