Business news reports of the massive hacker invasion at the parent
company of TJ Maxx and Marshalls illustrate the legal exposure all
organizations have for their customer and employee files. The company
faces not only federal and state regulatory action for the breaches but
also has had 18 class action suites filed against it in the first quarter of
2007.
In this week's E-Tips, we are departing from our normal format of
reporting on HR policy and compliance issues and, instead, are providing
15 tips to help you and your employees reduce your financial exposure
to identity theft. These tips are not a substitute for employer action to
secure private information in data files, but are guidelines to help anyone
concerned about ID theft and the related financial risks.
15 Steps to Protect Your Identity
1) Lock up your social security card, birth certificate, passport, and
other personal IDs that contain sensitive information. Do not carry these
items with you (except when absolutely necessary, such as to travel to a
foreign country) or keep them in areas accessible to workers in your
house.
2) Do not give out your social security number (SSN) unless
absolutely necessary. Ask for a different identifying number if the SSN is
being used (such as for a state driver's license).
3) Destroy all documents containing personally identifying
information when you dispose of them. In particular, make sure to
destroy bank and credit card statements, expired credit cards, old tax
documents, health insurance forms, medical records, and utility bills. If
you use a shredder, use one that cross shreds for the best destruction.
4) Shred all credit card and mortgage offers. ID thieves can use
them to apply for credit in your name. Better yet, call 1-888-5-OPTOUT
(1-888-567-8688) to opt out of receiving offers of credit based on your
credit report.
5) Limit the number of credit cards you have and cancel all card
accounts that you do not currently use. The fewer cards you have, the
easier it is to keep track of them.
6) Check credit card and bank statements each month as soon as
they arrive or are available online. This is the best way to detect any
unauthorized use, plus most credit card companies and financial
institutions only allow you to challenge mistakes for a set period of time,
typically 60 days. Also, ask credit card companies not to send you
"convenience" checks that could easily be stolen.
7) Limit use of debit cards attached to your bank accounts. For
example, do not use them at restaurants (or anywhere else that
they leave your sight) or for online transactions. Federal law,
bank policies, and debit card issuers generally protect against
most debit card losses, but the extent of the protection varies.
And, as a practical matter, your bank account could be emptied
before you can stop unauthorized transactions, leaving you with
no cash – at least for some period of time.
8) Pick up new checks at the bank instead of having them sent to
your mailbox.
9) Keep an eye on your mail. Deposit outgoing mail in post office
collection boxes, don't put it in your home mailbox if it is unsecured, and
promptly remove delivered mail. Stop mail delivery when you go on
vacation.
10) Check your credit report regularly to look for unauthorized credit
applications. The Fair and Accurate Credit Transactions Act (FACTA),
the same law that requires employers to properly dispose of consumer
reports created by third parties, gives every person a free annual credit
report. To get yours, visit www.annualcreditreport.com or call toll-free 1-
877-322-8228.
11) Do not respond to unsolicited email asking for personal
information – so-called "phishing" and "pharming" schemes. Thieves
often will send out emails that appear to be from legitimate entities, such
as banks, asking you to provide personal information, account
information, and passwords. Some even direct you to provide the info on
"secure" fake Web sites that look authentic, using corporate logos, etc.
As a practical note, your bank or credit card issuer typically will not send
out emails to ask for this type of information. If you really think it is from
your bank, call them directly, but do not use a number provided on a
suspicious email.
12) Protect your home computer. Use, and update regularly, virus
and firewall protections to prevent outside access to your computer.
Also, use "strong" passwords to protect your financial and other personal
information that mix letters and numbers. Do not use common identifiers
like your mother's maiden name or your birth date. In addition, change
passwords regularly for added protection and keep any written record of
your passwords in a secure place, not on your computer.
13) Destroy all personal and financial information on your computers
before discarding or giving them away. Simply deleting files is not
enough. You need to erase the files using special data destruction
programs.
14) Immediately report any losses of personal identification and
credit cards. For example, close credit card accounts and contact your
state's drivers' license agency to flag your file so no one else can apply
for a driver's license in your name.
15) Consider purchasing special ID theft protection. ID theft
protection plans typically monitor your credit report and report any
suspicious activity. In the event of a theft, the best plans will help you file
reports, dispute unauthorized activity, and restore your identity.
Be Prepared
While experts analyzing the ID theft statistics can't seem to agree on
how many people have been affected by ID theft (millions or thousands),
they do all seem to label it as the fastest growing white collar crime.
And most experts also agree that tracking down ID theft and repairing
your credit can take hundreds of hours of your time, result in lost
workdays, and cause stress. So, make sure to protect yourself by taking
the 15 simple actions recommended above.
Also, just as importantly, if you become a victim of ID theft, take action
quickly. You still can limit the damage by taking immediate steps to alert
banks and creditors about the theft. The FTC recommends ID theft
victims take the following four actions immediately:
1) Place a fraud alert on your credit reports to prevent thieves from
opening more accounts in your name by calling one of the three major
report companies, Equifax, Experian, or TransUnion.
2) Close all accounts that you know, or think, have been affected.
3) File a police report to register the theft with your local authorities.
4) File a complaint with the FTC to help law enforcement agencies
track down identity thieves and spot trends. The FTC also may be able
to refer you to other agencies that can help you.
For further tips and information on ID theft or to file a complaint, visit the
FTC on its Web site at www.ftc.gov/bcp/edu/microsites/idtheft, or call the
FTC's ID Theft Hotline at 1-877-ID-THEFT (438-4338).
THIS JUST IN...MAY BIRTHDAYS!
