IDENTITY THEFT ISSUES FOR EMPLOYERS, EMPLOYEES AND VICTIMS
"Oh what a tangled web we weave, when first we practice to deceive." ~ Sir Walter Scott
Identity theft has the potential to affect all of us, including our employment, credit history, benefits and reputation. In response to the dramatic increase in identity theft, President Bush established an Identity Theft Task Force by Executive Order 13402, signed May 10, 2006. The Task Force is co-chaired by the Attorney General and the Chairman of the Federal Trade Commission. Members of the Task Force include the executive leaders of the Departments of the Treasury, Commerce, Health and Human Services, Veterans Affairs, Homeland Security, Social Security and numerous other agencies.
In a recently published report, the Task Force provides numerous recommendations that, if implemented, will enhance security and reporting requirements and increase prosecution of offenders. There are four main areas of concentration in the report: 1) Data Protection; 2) Avoiding Data Misuse; 3) Victim Assistance; and 4) Deterrence. Under these broad categories, 31 recommendations are outlined, ranging from incremental to broad policy changes. Many of the recommendations will directly affect business operations.
Many of the recommendations relate to what information is collected from employees and how that information is safeguarded. In the immigration context, now is the time to review compliance issues as they relate to the Form I-9 (Employment Eligibility and Identity). These forms and the information on them need to be secured. When no longer required by law, they are to be destroyed in a manner that protects sensitive information from being released or misused. Indeed, the revised instructions on the preparation of Form I-9 (M-274 Handbook) state that the Social Security Number shall not be placed in Section 1 of the Form, unless the employer is on E-Verify. This implementation relates to the recommendation to decrease the unnecessary use of Social Security Numbers.
Under the broad category of Avoiding Data Misuse, the Task Force recommends establishing national standards for data protection and breach notification requirements. There are federal agencies currently developing training programs and outreach seminars for private industry that focus on safeguarding information and responding appropriately to security violations.
The Task Force recognized that there are always challenges to prevent identity theft and when violations occur, there are victims whose loss must be acknowledged and addressed. To that end, the Task Force has focused on a multi-year public awareness campaign that will encompass on-line educational resources, workshops and printed materials that define the rights of victims.
The Task Force has recommended an increase in law enforcement resources and prosecutions devoted to identity theft issues. This will require additional training for law enforcement personnel and victim assistance counselors. Local and Federal prosecutors will also be educated in the development and prosecution of these cases. In fact, the Task Force specifically recommended that identity theft by illegal aliens be targeted. Recent large scale enforcement actions by Immigration and Customs Enforcement (ICE) has underscored this approach since hundreds of aliens have been prosecuted on the state and federal level for identity theft, aggravated forgery and social security violations. The report has further recommended that the Department of Homeland Security increase enforcement and target individuals who use stolen identities to enter or remain in the United States. The establishment of Document Benefit Fraud Task Forces (DBFTF) and an aggressive Worksite Enforcement Initiative under ICE has facilitated the pursuit of these cases. The report also profiled screening and credentialing programs that have enhanced the government's ability to detect and deter identity fraud, including REAL ID, E-Verify and the Western Hemisphere Travel Initiative.
The Federal Trade Commission (FTC) is a civil enforcement agency and cannot unilaterally enforce criminal statutes. In order to be more effective in combating identity theft issues, the FTC is pursuing increased civil authority to take enforcement actions against businesses that fail to adequately safeguard sensitive information from theft.
Business leaders, government entities, law enforcement and the general public all are stakeholders in the global fight against identity theft and the pernicious consequences. Identity theft is an ever-evolving problem and will never be completely eradicated. As the report reflected, the government and the private sector must work together with consumers to combat this type of criminal activity and quickly respond to changing dynamics.
