Kroll Fraud Solutions Blog – A Dialogue on Data Security

Back at the first week of May, we discussed the CBS News report about copier security that was gaining so much attention. It has come as a surprise to a lot of people that copiers containing hard drives are continually and, quite frequently, returned to the office supply center with sensitive data still housed inside. In fact, it has drawn the attention of Congressman Edward Markey, who wrote a letter to the chairman of the Federal Trade Commission urging him to look into the matter. The FTC has responded, assuring Markey that they will reach out to those in the copier and office supply industry “to ensure that they are aware of the privacy risks associated with digital copiers and to determine whether they are warning their customers about these risks, whether they are providing education and guidance on this subject, and whether manufacturers and resellers are providing options for secure copying.”

Between the morning of May 1^st and the evening of May 2^nd, more than 13 inches of rain fell here in  Nashville. Flood waters invaded the city and surrounding communities to a degree never before experienced. Sadly, some of our co-workers suffered great property losses and are now dealing with complex aspects of recovery from this natural disaster.

In an effort to look for positive outcomes from this tragic event, today our team of Licensed Investigators shares insights culled from the experience of our colleagues in relation to matters of personally identifiable information (PII).

Prior to an emergency:

The following are a few of the federal laws that apply to consumers. Some states have additional consumer rights laws that apply, so be sure employees understand these as well:

• Identity Theft and Assumption Deterrence Act – Enacted in 1998, this act officially makes identity theft a federal crime.
• Fair Credit Reporting Act (FCRA) – Regulates the collection, dissemination, and use of consumer credit information. The FCRA establishes many consumer rights, including the right to a free credit report, and also defines the procedures for correcting fraudulent or inaccurate information on the report.

Do your frontline employees know what rules apply to your business? Have they been trained to understand consumer rights afforded by federal laws? If not, could they be giving your customers bad advice?

Victims of identity theft related to an existing account often experience confusion, anxiety, fear, and a host of other very emotional reactions. So when customers turn to the entity that issued the account (financial institution or utility provider, for example) for advice, it is a major moment of truth – if the customer receives compassion and helpful, accurate direction, the positive aspects of the event are amplified. If, however, the customer receives bad advice, the negative impact will quite likely be very severe, to the point that the customer may simply terminate the relationship. Taken in those terms, the time spent training your frontline employees – those most likely to be the first point of contact with customers with an alleged account theft or identity theft – makes perfect business sense.

Ten tips for fax safety

As we discussed in the last two posts in this series, you can see how even mundane office equipment can pose a serious security risk. Part of the security battle here is simply understanding the issue, because the technology already exists to help you erase your fax or copier hard drive. So, are you safeguarding against what amounts to pure error?

As it turns out, there are several steps you and your staff can take to reduce the risk of misdirected faxes: