Identity theft is a significant internal problems and it has reached an enormous proportion. Millions of people have fallen victim to many identity theft cases. Businesses and customers are suffering from a large amount of out of pocket losses. There are many targets where identity thieves may harvest critical information, such as from hospitals, merchants, schools, financial institutions and other potential areas. It’s especially true if the institution that uses or holds your personal information doesn’t comply with local laws and regulations regarding the proper management of public information. The consequences that non-compliant organization and business may face can be quite sever, including the removal of key management, huge fines and imprisonment for executives who are held responsible for the identity theft incident. Identity theft isn’t only related to credit card frauds. In this case, your medical information can be stolen from a hospital and you are charged for treatments that you never receive.
Social security numbers can also be stolen and this causes IRS to seek payment from taxes that you never own. Even relatively public information, such as driver license number can also be reused. This could cause the local police department to arrest you for serious traffic offense that you never knew about. Credit accounts, such as credit cards, loans and mortgages can also be opened in your name. This could cause you to have loans on your name, although you never apply for them. It can really be frustrating to find out that that you are liable for a huge debt that you never apply. Identity thefts and breaches can be quite debilitating financially. Businesses could face legal repercussions if they fail to comply with common prevention guidelines that can minimize identity thefts. Even if identity theft does occur, you need to have a well-rehearsed procedure that allows you solve problems. An effective response is needed if you want to clean up the identity theft mess. There should be a way to achieve full restoration, after you have mitigated identity theft attacks.
Both businesses and consumers need to constitute a culture of security and put a sense of urgency in their daily operations and activities. They should know each piece of information that can be used by identity thieves and such information can be gained. The identity theft prevention program can be implemented through proper security system, documentation and employee training. There should be a pro-active campaign to address the major crisis and enormous costs from class action lawsuits can be quite significant. It is important for any business to try to reduce liability and this can be the key to success. The financial implication of identity theft can really be significant, eroding the financial asset of a company significantly. Senior level executives and board of directors should consult attorneys concerning identity theft law and regulation, especially if they handle a large volume of consumer information. This will ensure that the operational procedure of your business will stay intact and smooth.