Protecting your business from identity theft

Hundreds of organizations, from private businesses to government agencies, become victims of identity theft each year.  Even the most seemingly innocent data such as names, addresses, and employment histories are at risk.  While the media likes to talk about high-tech methods of data theft the reality is that most crimes occur the same way they did 10 years ago, through human error. Every office is filled with potential hazards including unshredded reports, computers left logged into private networks, and sensitive documents that end up in the trash. 

The importance of caution cannot be stressed enough; being victimized through one’s own negligence (forgetting to destroy personal mortgage documents) and naiveté (allowing untrustworthy employees to manage critical information and accounting) holds devastating results. Even when justice is served, it’s often scant compensation for the loss of one’s reputation or customers’ trust.

Hazards in the workplace

Sensitive data can provide a windfall to crooks, with targets including bank account numbers, credit-card information, customer data, and employee records; not to mention, intellectual capital ranging from a family restaurant’s secret recipe to a firm’s client list all being valuable to thieves.

Points of vulnerability are many—unshredded financial statements, out-of-date antivirus programs, stolen laptops that don’t have software encryption, and documents left on your desk overnight may all fall victim to an unscrupulous members of cleaning, maintenance, or security staff.

Armed with just names, addresses, and phone numbers thieves can often con or compute their way into enough information to register credit cards, run up bills, and otherwise wreak havoc in your company’s name.

Such incidents can be costly. The average monetary cost to an organization of recovering from a data breach hovers at $6.75 million according to Javelin Strategy & Research. This cost does not include loss of productivity, customer goodwill, or brand equity. You can spend in excess of 500 hours recovering your good name, untold humiliation, and rebuilding an entire credit history. In some instances the damage is so great that entire businesses are lost.

Smart steps for prevention

An ounce of prevention far outweighs a pound of cure. Here are smart steps to guard against data loss:

·       Conduct employee background screening and reference checks, including researching the credibility of references;

·       All computer equipment that your business uses, including hard drives, laptops, USB keys and smart-phones should be encrypted and equipped with a password;

·       Shred sensitive documents—don’t just throw them in the garbage; and,

·       Create a corporate culture that supports preventive measures. Offer employees basic training that clearly illustrates the risks of not taking regular precautionary steps. Make it simple and convenient to take part in training process.

As all business moves toward wireless solutions and cloud computing, it never hurts to maintain a healthy sense of suspicion. Be aware of unsecure Wi-Fi hot-spots, unsolicited emails, and dodgy software protection. When in doubt, ask an experienced and qualified professional for assistance.