HR Solutions: Employers can help staff members fight ID theft

Editor's note: This is Part I of Protecting Your Identity. Part II, which focuses on individual measures of protection and steps that identity theft victims should take once the crime has occurred, is available below under "Related Items."

According to Equifax, one of the three national credit reporting agencies, the FBI has named identity theft as the fastest growing crime in America.

Identity theft is defined as a person using your name, Social Security number, date of birth and other identifying information to commit fraud. Fraud occurs, for example, when that person obtains a loan or credit card account in your name, without your permission.

People take this issue too lightly and think it will never happen to them. That is a big mistake.

Action plan

Employers can help shield staff from this catastrophe by providing in-house training as a benefit, and that training should focus on three areas.

First, put together a thorough review of information regarding the issue and relevant laws. Second, create a precise action plan that employees can execute to proactively safeguard themselves. Third, list the steps to take if team members become victims of identity theft.

Make the presentation a workshop environment so everyone will actually begin the action plan.

Extra steps

There are other ways employers can help their staff members protect themselves against identity theft.

• Start offering insurance. Pay for identity theft insurance obtainable through employees' credit card companies.

• Select one of the three credit reporting agencies - Equifax, Experian and TransUnion - and cover the agency's fees for a service that monitors credit files every business day and notifies associates of any activity within 24 hours of the event.

• Allow an affected employee time off if needed to handle identity theft issues. If a staff member is on the clock when it's discovered that identity theft has taken place, give the employee time off to deal with the problem. Offer three paid days off for the beginning stages of identity theft resolution. Add the policy to your employee handbook.

Typical scenario

Unless you have been through this yourself, you cannot begin to understand the living nightmare your staff member has just entered. The employee will have a hard time focusing on anything until restoring some semblance of control and financial security.

Affected employees must have the time, during workday hours, to make myriad telephone calls and fill out the countless number of necessary forms.

Try to walk a mile in the victim's shoes.

Without training and preparation, including insurance and the implementation of other types of preventative services, a victim is initially in shock. Thoughts typically come to mind in the following order: "I can't believe this is happening to me. This only happens to someone else. How did this person get my information in the first place? Oh, my gosh. Some stranger has my Social Security number! He could be buying a home or new electronic system at this very moment. I must get on the telephone. Now! Who do I call? Where are the phone numbers? What do I do? What awful things will I start finding out about? How can I control this?"

Those affected by identity theft will feel like they have lost control of a major part of life - and they're right.

Winding maze

By the second day, identity theft victims will have gotten information from the Internet and will be more organized to take action. They will call numerous companies and government organizations, send e-mail and write letters. Forms will have to be filled out online, and yet others will arrive in the mail.

The maze never seems to end, and the affected employees will have to balance dealing with identity theft with other responsibilities. That will be more daunting when the victim realizes that much of the work of finding out who the identity thief is falls largely on the victim's shoulders.

Most people affected by identity theft will be angry, and they'll wish they'd taken the time to put some protective measures in place to prevent the crime. The good news is that individuals and their employers can take several steps to avoid the disaster of identity theft. Personal information must be guarded.

Don't wait another day - take action now.

Lynne Haggerman, M.S., is president/owner of Lynne Haggerman & Associates LLC, a Springfield firm specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@lynnehaggerman.com.