Jul
13
Like It Or Not, Small Businesses Have To Be In Compliance With Identity Theft Protection Regulations
Filed Under Legal
Ck Dillon asked:
Small Business Owners, Wake Up!?
Have you heard Identity Theft (IDT) is the ‘Fastest Growing Crime in America.’
If you are a small business owner, here’s a not-so-veiled warning. How you react when identity theft happens in a business under your control, could mean the difference between losing money, losing your business, or jail time for you and your managers.
The FTC and other agencies are now rigorously enforcing laws that are concerned with IDT. Identity Theft is so out of control that the government is placing the burden on business owners to safeguard the Non-Public-Information (NPI) of customers and employees.
If NPI is lost under the wrong set of circumstances, it may result in fines up to $1,000,000 per occurrence, up to 10 years jail time for executives, and/or removal of management.
What are the wrong set of circumstances? The information was lost, period.
Are you familiar with Facta, Hipaa, Coppa or Gramm-Leach-Bliley Laws?
FACTA: Are you a business owner or manager?
Fair and Accurate Credit Transactions Act (FACTA) applies to every business and/or individual who maintains, or otherwise possesses, consumer information for a business purpose.
You, the employer, have a direct financial liability for identity theft under FACTA. Even if you did nothing wrong with respect to safeguarding the information, the FACTA Law allows you to be named as a defendant
HIPAA: Are you in charge of a doctor’s office, clinic, etc?
Provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA, Title II) specifies administrative, technical, and physical security procedures to assure the confidentiality of electronically protected health information.
Gramm-Leach-Bliley Act
The Financial Modernization Act of 1999, includes provisions to protect consumers’ personal financial information held by financial institutions. Do you know what businesses are considered ‘financial?’ You’ll be surprised.
COPPA: Are you a Daycare Owner? Do you know one?
Among other edicts the Children’s Online Privacy Protection Act requires that commercial web sites obtain parental consent (under most circumstances) prior to collecting any personally identifiable information from children whom they know to be under the age of 13.
The Cost to Businesses
Employees can take up to 600 hours, mainly during business hours, to restore their identities. If you experience a security breach, of your affected customer base :
20% will no longer do business with you 40% will consider ending the business relationship 5% will hire lawyers.
According to CIO Magazine, The Coming Pandemic, Michael Freidenberg, May 15, 2006…”When it comes to cleaning up this mess, companies on average spend 1,600 work hours per incident at a cost of $40,000 to $92,000 per victim.”
The Bottom Line
How many thousands will it cost you to defend yourself? Fines levied by the FTC and other government entities could potentially damage your reputation to the point of closure of your business.
Betsy Broder of the FTC says she understands that most small businesses cannot be expected to hire a full-time privacy specialist.
‘We’re not looking for a perfect system”, Broder says. Stolen Lives, ABA Journal, March 2006. “All businesses must be able to show they have a security plan in place. We need to see that you’ve taken reasonable steps to protect your customers’ information”.
It simply makes good business sense to be pro-active protecting your company.
Think About This
When It Comes To The Law: If you’re not protected from the law, you’re subjected to the law. If you don’t know your rights, you don’t have any rights.
Marcus
Small Business Owners, Wake Up!?
Have you heard Identity Theft (IDT) is the ‘Fastest Growing Crime in America.’
If you are a small business owner, here’s a not-so-veiled warning. How you react when identity theft happens in a business under your control, could mean the difference between losing money, losing your business, or jail time for you and your managers.
The FTC and other agencies are now rigorously enforcing laws that are concerned with IDT. Identity Theft is so out of control that the government is placing the burden on business owners to safeguard the Non-Public-Information (NPI) of customers and employees.
If NPI is lost under the wrong set of circumstances, it may result in fines up to $1,000,000 per occurrence, up to 10 years jail time for executives, and/or removal of management.
What are the wrong set of circumstances? The information was lost, period.
Are you familiar with Facta, Hipaa, Coppa or Gramm-Leach-Bliley Laws?
FACTA: Are you a business owner or manager?
Fair and Accurate Credit Transactions Act (FACTA) applies to every business and/or individual who maintains, or otherwise possesses, consumer information for a business purpose.
You, the employer, have a direct financial liability for identity theft under FACTA. Even if you did nothing wrong with respect to safeguarding the information, the FACTA Law allows you to be named as a defendant
HIPAA: Are you in charge of a doctor’s office, clinic, etc?
Provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA, Title II) specifies administrative, technical, and physical security procedures to assure the confidentiality of electronically protected health information.
Gramm-Leach-Bliley Act
The Financial Modernization Act of 1999, includes provisions to protect consumers’ personal financial information held by financial institutions. Do you know what businesses are considered ‘financial?’ You’ll be surprised.
COPPA: Are you a Daycare Owner? Do you know one?
Among other edicts the Children’s Online Privacy Protection Act requires that commercial web sites obtain parental consent (under most circumstances) prior to collecting any personally identifiable information from children whom they know to be under the age of 13.
The Cost to Businesses
Employees can take up to 600 hours, mainly during business hours, to restore their identities. If you experience a security breach, of your affected customer base :
20% will no longer do business with you 40% will consider ending the business relationship 5% will hire lawyers.
According to CIO Magazine, The Coming Pandemic, Michael Freidenberg, May 15, 2006…”When it comes to cleaning up this mess, companies on average spend 1,600 work hours per incident at a cost of $40,000 to $92,000 per victim.”
The Bottom Line
How many thousands will it cost you to defend yourself? Fines levied by the FTC and other government entities could potentially damage your reputation to the point of closure of your business.
Betsy Broder of the FTC says she understands that most small businesses cannot be expected to hire a full-time privacy specialist.
‘We’re not looking for a perfect system”, Broder says. Stolen Lives, ABA Journal, March 2006. “All businesses must be able to show they have a security plan in place. We need to see that you’ve taken reasonable steps to protect your customers’ information”.
It simply makes good business sense to be pro-active protecting your company.
Think About This
When It Comes To The Law: If you’re not protected from the law, you’re subjected to the law. If you don’t know your rights, you don’t have any rights.
Marcus
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