More than 9 million Americans were victims of identity theft in 2003. What many people, especially employers, do not realize, however, is that more than half of all identity theft crimes are generated in the workplace.
Although HIPAA provides protections which shield patients’ health information, HIPAA does nothing to protect
the identity information of the personnel working at a medical facility. The average identity theft crime
costs the business community $17,000 per victim. Experts predict that over the next four years, there will
be a 400% increase in lawsuits against businesses for negligent handling of their employees’ personal
identity information.
After a major pharmaceuticals company in San Diego merged with another company, some of its personnel records
were left in an unsecured storage area. An employee found the boxes, and committed identity theft against
30 co-employees. Fourteen of those employees sued for negligence, forcing the company to settle for a
substantial sum out of court.
Questions such as: “What is the average company’s risk in managing employee information?” are being asked
more frequently. There are, however, effective procedures that any organization can implement which will
have an immediate impact on prevention efforts. For example: Classify all personal identity information
according to its sensitivity; Establish protocols to safeguard identity information when transported by
laptops and pda’s; Establish procedures to prevent former personnel from gaining access to computers and
paper files whether secured or unsecured.
JMC Consulting Group specializes in advising businesses in the prevention of Workplace Identity Theft.
Their firm has developed a unique and innovative approach which encompasses state of the art methods of
analysis, review, and recommendations to all organizations intent on preventing identity theft in the
workplace. JMC’s offices are presently located in Los Angeles and Las Vegas.
PREFERRED Therapy Providers does not endorse the services provided by JMC Consulting Group.
Article provided for informational purposes only.
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