As a professional, you know there are laws every business or organization must follow.   However, results of a recent survey by zTelligence and Fellowes Inc., showed only 13.1 of business owners recognize the term “FACTA”.  That could mean that nearly 87% of all business owners are not aware that FACTA:

• Is federal legislation that went into effect June 2005
• Can shut your business or organization down whether you have two or two thousand employees
• Provide for major fines to you and your organization by  the Attorney Generals office or the FTC for non-compliance

Provides another avenue for lawyers to file lawsuits against your business/organization on behalf of customers or employees.  

FACTA is only one piece of legislation that affects your business.  There are others:  

• HIPAA Security Rule
• Gramm, Leach, Bliley (GLB) Safeguard Rule
• Numerous individual state laws (such as the Texas Whistle Blower Statute)

According to CIO Magazine, The coming Pandemic, Michael Freidenberg, May 15, 2006, “If you experience a security breach, 20% of your affected customer base will no longer do business with you, 40% will consider ending the relationship, and 5% will be hiring lawyers!” Freidenberg also states, “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.”

These laws (and potential civil or criminal penalties) apply to any business or organization (large or small) that collects personal information about customers, clients, students, or employees (including names, credit card numbers, birthdates, home addresses, and more).

“All businesses should look to that law for guidance on how to protect consumer data.  At a basic level, she [Betsy Broder]  says, that means businesses need to have a plan in writing describing how customer data is to be secured and an officer on staff responsible for implementing that plan. 

Many large businesses entrust such planning and execution to a chief technical officer or chief privacy officer.  Broder says she understands that most small businesses cannot be expected to hire a full-time privacy specialist, but she adds that all businesses must be able to show they have a security plan in place.

‘We’re not looking for a perfect system, Broder says, “But we need to see that you’ve taken reasonable steps to protect your customer’s information.’” 

 The July/August 2006 issue of “Corporate Board Member” asks and answers the question, “Who will class-action lawyers go after next?”  Unfortunately, any company which has access to personal data about customers and employees may be at risk.  “This applies to just about everybody, but with concerns about identity theft zooming, any company that accidentally discloses data protected by privacy laws runs a risk of litigation.” 

You must make a critical decision about your business or organization.  Does your company comply?  Most businesses and organizations want to take action AFTER they become a victim of a data breach.  We have found that taking a pro-active approach will MITIGATE your damages.

However, many organizations are unsure where to begin.

THERE ARE FIVE COMMON TYPES OF IDENTITY THEFT:

• Drivers License Identity Theft
• Social Security Identity Theft
• Medical Identity Theft
• Character/Criminal Identity Theft
• Financial Identity Theft 

This may be a little overwhelming, but we can help your business or organization comply with the new requirements and implement your own affirmative defense at virtually NO COST to you or your organization.

“What’s the catch?"
We’re glad you asked.  The January 19, 2006 edition of “Business and Legal Reports” says, “One solution that provides an affirmative defense against potential fines, fees, and lawsuits is to offer some sort of identity theft protection as an employee benefit.  An employer can choose whether or not to pay for this benefit.  The key is to make the protection available, and have a mandatory employee meeting on identity theft and the protection you are making available, similar to what most employers do for health insurance. . .”

We first experienced a new privacy invasion in the late 90’s.  Prior to 1998 there was no need or market for Anti-Virus Software or Firewall Software.  Who would consider using a computer today without Firewall Software, Anti-Virus Software, Anti-Spam Software, etc?  This invasion of our privacy is now hitting and hurting many Americans as the companies with whom they do business, or sometimes even their employers are falling victim to the fastest growing crime in America> - Identity Theft!  American businesses are a huge Identity Theft target as they possess a great deal of non-public information (NPI).  As a result Federal, State, and Local governmental regulatory agencies are putting much of the burden of protecting and securing NPI on the backs of American business.  We specialize in helping protect your customers, your clients, and your employees.