When the Victim of Identity Theft is Your Employee

When the Victim of Identity Theft is Your Employee
by Yan Ross ©2004 - All Rights Reserved

Nearly 30 million cases in the last five years, 9.9 million last year alone; almost everyone knows someone who has been a victim. But there's still the attitude that somehow it always happens to "the other guy." But what if the "other guy" is your employee?

(This article is the first in a series on the impact of Identity Theft on employers.)

All across America, the fastest-growing white-collar crime in the nation has been identified as "identity theft" -- and it's affecting individuals and employers alike in insidious ways.

We've all heard of the problem, we've all seen the ads, but few have recognized how the theft of an employee's identity can be devastating to the employer's business.

Nearly 30 million cases in the last five years, 9.9 million last year alone; almost everyone knows someone who has been a victim. But there's still the attitude that somehow it always happens to "the other guy."

But what if the "other guy" is your employee? What if you are the "other guy?" What are the potential costs to your business? They’re not really obvious at first. You probably won’t write anybody a check directly…but consider the hidden costs of:

• Lost time
• Reduced productivity
• Lower morale
• Deteriorating quality
• And more depending upon your individual business

If you do defense work or other manufacturing that requires your people to have security clearances, identity theft involving a key employee has the potential to be disastrous.

Your valuable employee, through no fault of his own, becomes an identity theft victim. At best he’s only distracted for a little while. At worst he’s costing you business because of his legal problems, lost time, and deteriorating performance.

Stories abound of innocent people whose lives are disrupted by identity theft. One victim in eight (12%) has his name and Social Security Number used in the commission of a crime. The result is all too often the issuance of a warrant, an arrest, even imprisonment until the true identity can be sorted out from the stolen one.

If he's your employee, your business suffers along with him. What can YOU do for your mutual protection?

Consider offering your employees and executives the protection of a comprehensive plan that provides:

• Access to credit reports for employee and spouse
• Continuous electronic monitoring and immediate notification of any attempts to perpetrate this crime,
• A licensed private investigator to restore the victim's true identity, and
• Expense reimbursement for associated costs of identity restoration.

 About the Author:

Mr. Ross is a frequent lecturer and quoted authority on identity theft issues. His recent presentations on these related subjects include such sponsoring organizations as Arizona State University College of Extended Education, the Arizona Society of CPAs, and the Arizona Small Business Association.

In Mr. Ross's capacity as an independent associate of Prepaid Legal Services, Inc. [NYSE symbol PPD], he markets the Identity Theft Shield product provided by Kroll Worldwide, the nationally and internationally prominent security and investigative firm. Additional information and enrollment capability can be accessed at www.yanross.info. His office can be reached at (888) 355-5885.