Four Reasons Why Employers Need to Address Identity Theft
Here’s a checklist of must-knows and action items for today’s savvy employers:
No. 1: Employers may be the source of the stolen data
Companies maintain significant personal information about employees – a potential digital treasure for identity thieves – including demographic information, personnel files, credit histories, background reports, Social Security numbers, benefits data, direct deposit information, and payroll and tax records.
You are 11 times more likely to be a victim of identity fraud if you are notified of a breach, according to the 2017 Javelin Strategy & Research study. Nearly one-in-three consumers notified of a data breach became victims of identity fraud in 2016.
No. 2: Enterprises themselves can face liability and risk
Employers can face legal repercussions when their own employees’ records are compromised. If you have a data breach today:
If you do not have the answers to these three questions, you should speak to a LegalShield broker and/or benefit specialist. Don’t leave your business without employee identity theft protection.
No. 3: Identity theft impacts employers and their employees
If employees’ identities are stolen, they may be stressed and/or distracted during the recovery process, which in turn affects productivity.
Employment issues, including missed time from work (56%1) and losing out on employment opportunities (44%)*, are among the experiences cited by identity theft victims in the ITRC report.
Identify theft has a huge emotional impact that can affect workplace performance, in part because identity theft generates strong feelings in victims. The ITRC report cited “frustration or annoyance” (81%), “fear regarding personal financial security” (69%), “rage or anger” (58%) and a “sense of powerlessness or helplessness” (54%) among the list of feelings experienced by ITRC survey respondents.
Only nine percent of respondents report that their employer is supportive. Efforts to heighten employers’ awareness about the impact of identity theft need to be strengthened so workplaces can offer support to victims. Individual employers can play a bigger role in both being supportive, providing resources in severely impactful cases, and providing training and education to their workforce on ways to minimize risk.
No. 4: Identity theft protection offers a timely, helpful employee benefit
Offering identity theft protection as an employee benefit, especially as digital technology becomes more prevalent, serves millennials and baby boomers alike:
For questions or assistance with enrollment, contact Rick Shore, the designated BCMS LegalShield/IDShield associate, at 636-299-6345 or [email protected].
Article provided by LegalShield.
*Identity Theft: The Aftermath 2016.” Identity Theft Resource Center, for 2015 calendar year. 2017 Identity Fraud Study, Javelin Strategy & Research, February 2017.
No. 1: Employers may be the source of the stolen data
Companies maintain significant personal information about employees – a potential digital treasure for identity thieves – including demographic information, personnel files, credit histories, background reports, Social Security numbers, benefits data, direct deposit information, and payroll and tax records.
You are 11 times more likely to be a victim of identity fraud if you are notified of a breach, according to the 2017 Javelin Strategy & Research study. Nearly one-in-three consumers notified of a data breach became victims of identity fraud in 2016.
No. 2: Enterprises themselves can face liability and risk
Employers can face legal repercussions when their own employees’ records are compromised. If you have a data breach today:
- Do you have a business plan?
- Do you have an employee communication strategy?
- Do you have a budget to fund a breach plan for 12, 24, or more months?
If you do not have the answers to these three questions, you should speak to a LegalShield broker and/or benefit specialist. Don’t leave your business without employee identity theft protection.
No. 3: Identity theft impacts employers and their employees
If employees’ identities are stolen, they may be stressed and/or distracted during the recovery process, which in turn affects productivity.
Employment issues, including missed time from work (56%1) and losing out on employment opportunities (44%)*, are among the experiences cited by identity theft victims in the ITRC report.
Identify theft has a huge emotional impact that can affect workplace performance, in part because identity theft generates strong feelings in victims. The ITRC report cited “frustration or annoyance” (81%), “fear regarding personal financial security” (69%), “rage or anger” (58%) and a “sense of powerlessness or helplessness” (54%) among the list of feelings experienced by ITRC survey respondents.
Only nine percent of respondents report that their employer is supportive. Efforts to heighten employers’ awareness about the impact of identity theft need to be strengthened so workplaces can offer support to victims. Individual employers can play a bigger role in both being supportive, providing resources in severely impactful cases, and providing training and education to their workforce on ways to minimize risk.
No. 4: Identity theft protection offers a timely, helpful employee benefit
Offering identity theft protection as an employee benefit, especially as digital technology becomes more prevalent, serves millennials and baby boomers alike:
- Identity theft protection can help companies to attract and retain the best talent in an age of competition for skills
- Identity theft protection offers an easy means of communicating with employees and can help build engagement and trust
- Identity theft protection helps create an “employment” brand
- Identity theft protection may provide more real value to some employees than benefits such as travel discounts
For questions or assistance with enrollment, contact Rick Shore, the designated BCMS LegalShield/IDShield associate, at 636-299-6345 or [email protected].
Article provided by LegalShield.
*Identity Theft: The Aftermath 2016.” Identity Theft Resource Center, for 2015 calendar year. 2017 Identity Fraud Study, Javelin Strategy & Research, February 2017.
