How Small Businesses Contribute to Identity Theft

70% of identity theft cases originate in the workplace, according to Special Agent Steven Goldblum of the FBI. And, contrary to popular belief, only 11.6% of cases are computer or internet related. Casually stored and/or tossed paper records remain the main risk.

In my work with entrepreneurs, I often see improperly stored employee and customer data, generally because the business owner hasn't considered the risk. Consider:

• Identity theft costs businesses over $53 billion annually
• Federal (US) law can fine a business $1000 per occurrence of failure to shred or burn paperwork, or wipe or destroy computer disks containing personal information
• California law requires businesses to maintain reasonable security procedures & practices to protect personal info* of customers, employees and vendors from unauthorized access. Sloppy procedures alone are a problem, since a complaintant does not need to prove a monetary loss to win a case against the business.

*"Personal information" means an individual's first name or first initial and his or her last name in combination with any one or more of the following : (A) Social security number. (B) Driver's license number or California identification cardnumber. (C) Account number, credit or debit card number, in combination with any required security code, access code, or password that would permit access to an individual's financial account. (D) Medical information. (any individually identifiable information, in electronic or physical form, regarding the individual's medical history or medical treatment or diagnosis by a health care professional.) entire text of bill

If you are a small business owner, involve your employees in a discussion of where you may be vulnerable and what actions you can take to improve your data storage and processes. Many solutions are quite simple, such as locking filing cabinets after business hours so employee and customer data are not readily available to the cleaning crew; and making sure to shred documents with any of the information in the previous paragraph.

If you would like to fully participate in the discussion and problem solving, consider having your meeting facilitated. I often facilitate sessions for small businesses and departments, and would be happy to discuss how this might work for you.