As part of effective workplace identity theft solutions, companies should have a backup plan to prevent identity theft knowing that data breach incidents are inevitable. We hear about personal data breach incidents regularly which result in almost a billion lost personal records, millions of victims, and several billions of dollars in fraud losses annually due to identity theft.
Although companies do all that they can to secure the personal information of their customers, we now know that personal data breach incidents are inevitable and the stolen information is used by identity thieves to commit various identity theft crimes. I use the word inevitable because although many companies have good intentions to keep the personal information of their customers safe, information protection is not 100 percent effective all the time as evidenced by the sophisticated and successful attacks upon some of the largest and richest companies in the world. Also, the fact that consumers and businesses are voluntarily becoming identity obese by sharing and collecting an excessive and unnecessary amount of personal information is not helping us reduce the consequences of identity theft. As you may have noticed, personal data breach incidents are now resulting in huge losses of personal records, why? Because businesses maintain huge files which contain millions of customer personal records. So, huge files combined with a lack of 100 percent security result in huge identity theft problems for companies. Regardless of who lost control of what files and how, any personal information obtained from any company can be used to defraud any company. And by the way, we may not know about some of data breach incidents because of lack of transparency and disclosure for obvious reasons.
That being said, what are we supposed to do given the large size of data files that companies maintain, less that 100 percent effective security, and, lack of knowledge about all incidents and their nature? We have to have a backup plan.
Knowing the facts described above, businesses are better off having a backup plan to prevent any stolen information from being used to defraud them. The backup plan is an identity theft prevention program which can be designed and managed by qualified employees. Having an identity theft prevention program is also a major requirement of the US Federal Red Flags Rule regulation overseen by FTC and other agencies.