Protect Your Good Name
March 11, 2011
Provided by Federated Insurance
Identity theft is "invisible" and often unavoidable, but sound business practices can help reduce the risk.
What do criminals do with your information?
- Apply for loans and credit cards in your name
- Open new bank accounts and transfer your funds into them
- Set up utility services or long distance phone service
- Obtain employment and benefits
- Create documents for illegal immigrants
- Receive Social Security benefits
- File false tax returns
- File for bankruptcy
- Use your name if arrested for committing a crime
- Ruin your credit and your reputation!
Establishing and enforcing sound business practices may be your best defense against identity theft-for yourself, your employees, and your customers.
- Develop an Identity Theft Prevention Program (ITPP) to comply with the Red Flags Rule, if your business falls within its jurisdiction.
Make sure you have a written company policy on record storage and disposal. The Fair and Accurate Credit Transactions Act (FACTA), passed in June 2005, includes provisions requiring organizations to properly dispose of consumer records.
- Review your hiring practices, sales practices, and employee training and communication procedures.
- Evaluate the confidential aspects of your operations and take steps to improve risk management in areas that may be lacking.
- Implement an Information Security Policy. The policy should cover electronic communication, Internet usage, mobile device security, personal use of business property, and password responsibilities.
- Order your credit report annually and act on suspicious activity.
This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer. This publication is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business or your customers. You should always consult your personal attorney and insurance professional for advice unique to you and your business. ©Copyright 2010 Federated Mutual Insurance Company, All Rights Reserved.