Employers Beware of Identity Theft Employees

The crime of identity theft by employees is reachingwere also investigated and linked to a Subway
record numbers, maybe because of a heightenedrestaurant in the Pittsburg area. Dinner out can really
awareness of the crime, or progress made by manybe expensive, especially when using your credit card,
states in detecting this crime as well as enforcingmaybe we should all think about paying cash next time.
stricter penalties. Consumers are not the only onesSoutheast Missouri State University
who can benefit from the awareness of how easyA former Southeast Missouri State University
and common the practice of identity theft is.employee downloaded over 800 student's names and
Employers also need to be aware of the threats tosocial security numbers. Although there is no evidence
their business when employees are able to takethat the social security numbers had been used to
advantage of access to personal information and useapply for credit at least two had been used in an
it to commit identity theft.attempt to log into student accounts. Students are
Important Facts Employers Should Know about Identitybeing advised to obtain fraud alerts and security
Theft:freezes on their accounts. The former employee, a hall
The number one source of identity fraud involves thedirector, was indicted on two charge of identity fraud
theft of employee records.and one charge of computer trespass.
A recent study by Michigan State University revealed"In Georgia, unauthorized possession of such data is a
that over 50% of identity thefts occur in thefelony. In Georgia you don't have to show the person
workplace.used the data in any inappropriate way. Possession is
The majority of identity theft is committed byenough," said Dr. Dennis Holt, vice president for
employees hired to perform low-level tasks, such asadministration and enrollment management.
data entry.Employers, did you know that the Fair and Accurate
90 percent of these crimes involve payroll orCredit Transaction Act hold employers responsible for
employee records.these crimes? Any employer whose action or inaction,
10 percent of these crimes involve customerleads to breach of employee information can be fined
information.by state and federal governments and can be sued in
Examples:civil court. Class action lawsuits can be brought against
Pizza Hutemployers for both actual and punitive damages.
A number of complaints in Ebensburg PA, aboutThese stories are just a few examples of what can
unauthorized purchases were made and uponhappen with employers do not properly screen, train
investigation, police found one common denominatorand monitor employees to protect their businesses and
among the identity theft victims. All of the victims hadtheir customers. It is important to be aware of state
used a credit card in the Ebensburg Pizza Hut withinlaws for possessing, using and even disposing of
one month. A thirty-year-old employee of the Pizzacustomer's personal information. Companies can be
Hut was charged with making $6,700 worth of internetheld liable for their employee's actions that put people
purchases using bankcard numbers and names ofat risk for identity theft, even it an identity theft hasn't
Pizza Hut customers, as a result of their access to thisoccurred, as is the case in Georgia and as Radio
information. The thief was charged with seven countsShack and other companies found out in Texas, when
of each identity theft, access device fraud, and theftemployees threw credit applications in the trash;
by unlawful taking, theft by deception and receivingapplications which held all the information needed to
stolen property.commit identity theft. It is important that businesses be
Police have encouraged all patrons of this restaurantinformed, proactive and vigilant in training, screening and
check their statements carefully, as they could havemonitoring their employees in an effort to protect your
been victims and not even know it. Similar eventscustomers, other employees and your business.