Biggest Crime in History – In terms of Potential Victims!

The world’s largest “permissions-based” e-mail marketing company, Epsilon, reported late last week that someone hacked into its computer system and stole an unknown number of e-mail addresses and names.

According to Professor Steffen Schmidt, Iowa State University, “This is probably the single largest criminal act in history since this company potentially has compromised the recipients on the 40 BILLION or so e-mails they send out each year.” Schmidt is professor of public policy and has co-written with Michael McCoy two books on identity theft. He is also co-founder of the blog http://stolendata.blogspot.com/ and a developer of the Engineering On Line certification workshop Information Security and Identity Theft Policy http://www.eol.iastate.edu/Professional-Development/Courses/idtheft.html

“This is a stunning example of the huge risk anyone using email now faces of being the victim of highly targeted “Spear Phishing” which is a sophisticated form of sending real-looking links to companies the recipient is familiar with (such as a bank or a retailer) and then soliciting “updates” or other information. The unsuspecting person clicks on the link and is routed to a criminal web site where their accounts and even potential their full identity will be stolen,” said Schmidt.

“It will be many, many years of painful and costly trouble for millions of people,” Schmidt said, adding, “someone needs to be sued, convicted, and do serious jail time for such negligence of a huge and sensitive data base.”

Steffen Schmidt, Professor
For our latest Course that ANYONE can take visit;
http://www.eol.iastate.edu/Professional-Development/Courses/idtheft.html

Online Sites Offer Connections That May Not Be Sweetheart Deals

I wanted to share a great article with our readers. Stacy has written for our blog in the past and is writing this on behalf of www.pplmediaroom.com.

Thanks,

Michael MCCoy

By Stacy Whelchel

Online sites offer connections Happy Valentines Day! In recognition of this day celebrating sweethearts, we are subject to not only numerous ads promoting the “perfect” gift for loved ones, but also online websites which offer services designed to find that special someone. However, profiles posted on single or dating sites are not always who or what they claim to be, says the Better Business Bureau.

The Bureau reported that oversea scammers are preying on consumers who seek connections through online venues. Thousands of victims have been tricked each year at a cost of millions of dollars.

The con artists use websites where they create fake profiles and use kind words to gain victims’ trust. The targets might even receive flowers and gifts, most likely bought using stolen credit cards. Unfortunately, since these criminals are overseas, it is more difficult to investigate and prosecute, according to the BBB.

The BBB says to avoid online relationships with those who:

* Only communicate through email, instant message and cell phone
* Are charming, understanding, flattering, sensitive, have a caring personality
* Have a career or life circumstances that takes him or her overseas
* Is quick to develop a relationship and talk about love
* Have a young child, typically a boy or girl between the ages of 5 to 12
* Have a sudden emergency, often involving a child's health
* Have a reason he or she cannot get money and need your financial help
* If you help them, they ask for more money

Caution is always advised when sharing any type of confidential data, especially with those sight unseen. If identity theft is a threat because of breached information, Pre-Paid Legal’s Identity Theft ShieldSM and its team of restoration experts will be there for you.

Online Identity Theft Awareness course

I want to thank the hundreds of people that have signed up to be one of the few individuals to join our test group for the Iowa State University online Identity Theft Awareness Certificate Course managed by ISU Engineering Online Learning. There will be a second trial group after we have collected the feedback and make suggested changes.

If you are interested in taking this certificate course in the future add your name to our "subscriber" list found on the right hand column of this page. Find "Pleas Subscribe to Receive Updates" area and add your Name, email and State the press subscribe button. Or use link directly below.

Does ID Theft Weigh-In On Immigration Debate?

by Sue B. Martines J.D. and Michael McCoy M.Sc.

“It’s a black and white issue,” the gal next to me on the plane volunteers, as she peers over at the newspaper article I’m reading about Arizona’s latest immigration law battle. And then it taints my entire train of thought -- is it as simple as that? Is it as simple as saying someone is either lawfully in this country or they’re not? Is it that you either jumped through the justice hoops and got it done or you need to go back from whence you came?

Foregoing the more esoteric consideration, perhaps, about whether borders are indeed a necessity, when identity theft is factored into the immigration debate, how can it ever be black and white? The July 16, 2010 USA Today article discusses how immigration is re-entering the national debate and is back in the spotlight for November’s races. But nowhere is identity theft addressed in the article.

And yet, there are dozens of websites where anyone with $20 and a credit card can buy a fake ID. You gotta wonder upon what document is the “sending one back from whence they came” based?

If an illegal immigrant turns into an identity thief by buying a Social Security number in order to remain in the U.S., and it’s happening at an alarming rate, then is there an additional argument in favor of such laws being looked at in Arizona – where immigration is reviewed with nearly every bust?

A Center for Immigration Studies article cites that approximately 75 percent of working-age illegal aliens use fraudulent Social Security cards to obtain employment. (And that was in 2009.)

Understandably, regardless of which end of the potentially black and white immigration spectrum one stands, there cannot be a laundry list of potential crimes to be evaluated with every charge, but identity theft needs to be factored into the mix somehow. In fact, if identity theft doesn’t weigh-in now, the immigration issues we’re facing may never really get addressed.

The “Red Flags” Rule: What Health Care Providers Need to Know About Complying with New Requirements for Fighting Identity Theft

by Steven Toporoff
As many as nine million Americans have their identities stolen each year. The crime takes many forms. But when identity theft involves health care, the consequences can be particularly severe.

Medical identity theft happens when a person seeks health care using someone else’s name or insurance information. A survey conducted by the Federal Trade Commission (FTC) found that close to 5% of identity theft victims have experienced some form of medical identity theft. Victims may find their benefits exhausted or face potentially life-threatening consequences due to inaccuracies in their medical records. The cost to health care providers — left with unpaid bills racked up by scam artists — can be staggering, too.

The Red Flags Rule, a law the FTC will begin to enforce on August 1, 2009, requires certain businesses and organizations — including many doctors’ offices, hospitals, and other health care providers — to develop a written program to spot the warning signs — or “red flags” — of identity theft. Is your practice covered by the Red Flags Rule? If so, have you developed your Identity Theft Prevention Program to detect, prevent, and minimize the damage that could result from identity theft?

WHO MUST COMPLY

Every health care organization and practice must review its billing and payment procedures to determine if it’s covered by the Red Flags Rule. Whether the law applies to you isn’t based on your status as a health care provider, but rather on whether your activities fall within the law’s definition of two key terms: “creditor” and “covered account.”

Health care providers may be subject to the Rule if they are “creditors.” Although you may not think of your practice as a “creditor” in the traditional sense of a bank or mortgage company, the law defines “creditor” to include any entity that regularly defers payments for goods or services or arranges for the extension of credit. For example, you are a creditor if you regularly bill patients after the completion of services, including for the remainder of medical fees not reimbursed by insurance. Similarly, health care providers who regularly allow patients to set up payment plans after services have been rendered are creditors under the Rule. Health care providers are also considered creditors if they help patients get credit from other sources — for example, if they distribute and process applications for credit accounts tailored to the health care industry.

On the other hand, health care providers who require payment before or at the time of service are not creditors under the Red Flags Rule. In addition, if you accept only direct payment from Medicaid or similar programs where the patient has no responsibility for the fees, you are not a creditor. Simply accepting credit cards as a form of payment at the time of service does not make you a creditor under the Rule.

The second key term — “covered account” — is defined as a consumer account that allows multiple payments or transactions or any other account with a reasonably foreseeable risk of identity theft. The accounts you open and maintain for your patients are generally “covered accounts” under the law. If your organization or practice is a “creditor” with “covered accounts,” you must develop a written Identity Theft Prevention Program to identify and address the red flags that could indicate identity theft in those accounts.

SPOTTING RED FLAGS

The Red Flags Rule gives health care providers flexibility to implement a program that best suits the operation of their organization or practice, as long as it conforms to the Rule’s requirements. Your office may already have a fraud prevention or security program in place that you can use as a starting point.
If you’re covered by the Rule, your program must:

Identify the kinds of red flags that are relevant to your practice;
Explain your process for detecting them;
Describe how you’ll respond to red flags to prevent and mitigate identity theft; and
Spell out how you’ll keep your program current.

What red flags signal identity theft? There’s no standard checklist. Supplement A to the Red Flags Rule — available at ftc.gov/redflagsrule — sets out some examples, but here are a few warning signs that may be relevant to health care providers:

Suspicious documents. Has a new patient given you identification documents that look altered or forged? Is the photograph or physical description on the ID inconsistent with what the patient looks like? Did the patient give you other documentation inconsistent with what he or she has told you — for example, an inconsistent date of birth or a chronic medical condition not mentioned elsewhere? Under the Red Flags Rule, you may need to ask for additional information from that patient.

Suspicious personally identifying information. If a patient gives you information that doesn’t match what you’ve learned from other sources, it may be a red flag of identity theft. For example, if the patient gives you a home address, birth date, or Social Security number that doesn’t match information on file or from the insurer, fraud could be afoot.

Suspicious activities. Is mail returned repeatedly as undeliverable, even though the patient still shows up for appointments? Does a patient complain about receiving a bill for a service that he or she didn’t get? Is there an inconsistency between a physical examination or medical history reported by the patient and the treatment records? These questionable activities may be red flags of identity theft.

Notices from victims of identity theft, law enforcement authorities, insurers, or others suggesting possible identity theft. Have you received word about identity theft from another source? Cooperation is key. Heed warnings from others that identity theft may be ongoing.

SETTING UP YOUR IDENTITY THEFT PREVENTION PROGRAM

Once you’ve identified the red flags that are relevant to your practice, your program should include the procedures you’ve put in place to detect them in your day-to-day operations. Your program also should describe how you plan to prevent and mitigate identity theft. How will you respond when you spot the red flags of identity theft? For example, if the patient provides a photo ID that appears forged or altered, will you request additional documentation? If you’re notified that an identity thief has run up medical bills using another person’s information, how will you ensure that the medical records are not commingled and that the debt is not charged to the victim? Of course, your response will vary depending on the circumstances and the need to accommodate other legal and ethical obligations — for example, laws and professional responsibilities regarding the provision of routine medical and emergency care services. Finally, your program must consider how you’ll keep it current to address new risks and trends.

No matter how good your program looks on paper, the true test is how it works. According to the Red Flags Rule, your program must be approved by your Board of Directors, or if your organization or practice doesn’t have a Board, by a senior employee. The Board or senior employee may oversee the administration of the program, including approving any important changes, or designate a senior employee to take on these duties. Your program should include information about training your staff and provide a way for you to monitor the work of your service providers — for example, those who manage your patient billing or debt collection operations. The key is to make sure that all members of your staff are familiar with the Rule and your new compliance procedures.

WHAT’S AT STAKE

Although there are no criminal penalties for failing to comply with the Rule, violators may be subject to financial penalties. But even more important, compliance with the Red Flags Rule assures your patients that you’re doing your part to fight identity theft.

Looking for more information about the Red Flags Rule? The FTC has published Fighting Fraud with the Red Flags Rule: A How-To Guide for Business, a plain-language handbook on developing an Identity Theft Prevention Program. For a free copy of the Guide and for more information about compliance, visit ftc.gov/redflagsrule.

In addition, the FTC has released a fill-in-the-blank form for businesses and organizations at low risk for identity theft. The online form offers step-by-step instructions for creating your own written Identity Theft Prevention Program. You can fill it out online and print it. The do-it-yourself form is available at ftc.gov/redflagsrule.
Questions about the Rule? Email RedFlags@ftc.gov.

Steven Toporoff is an attorney with the FTC’s Division of Privacy & Identity Protection.

Where’s the Crime in ID Theft?

by Sue Martines J.D. and Michael McCoy M.Sc.

Doesn’t its very name, identity ‘THEFT’ beg for its categorization as a “crime??” And isn’t thieving arguably the quintessential global crime throughout the ages? Our children play at being burglars, and video games , Hollywood, comics and authors profit from images of the classic “bad guy.” It’s just that those images aren’t historically of the stealthy computer whiz in his home abroad bartering online for our health insurance policy data so that it can be re-sold for tens of thousands of dollars!!

Unlike more traditional “theft,” identity theft has a business overlay that often overshadows the criminal nature of the crime!

In a non-empirical study of all news reports in the US on identity theft in the past 30 days, it appears that approximately 47% of all reported newsworthy identity theft stories relate to criminal cases. (See Google’s daily “identity theft” global search).

In other words, instead of just stories relating to how to travel this summer without identity theft risks (see http://www.thesilentcrime.com/) or how to be ready to avoid identity theft when placing a catalogue order, per Heloise (see http://www.chron.com/disp/story.mpl/life/dailycols/7063108.html), or The Chicago Tribune telling you to shred your bills to prevent identity theft (see http://www.chron.com/disp/story.mpl/life/dailycols/7063108.html) -- I’m talking about the stories on the two arrested in Maricopa, Arizona for using a stolen credit card at a local drug store (see http://www.abc15.com/dpp/news/region_central_southern_az/maricopa/2-arrested-in-maricopa-identity-theft-case) or The Washington Post story on the security guard now charged with identity theft! (See http://voices.washingtonpost.com/local-breaking-news/crime-and-public-safety/georgetown-guard-charged-with.html.)

Why is it that the juicy stories about crime victims get usurped by the perhaps more mundane shred your receipt ones? And that the burden of the impact of identity theft seems to fall shamelessly upon the victims, consumers and businesses??

In fact, the business overlay is so bold with identity theft that the ever-evolving laws relating to it go more to the duties of business owners than to the culprit! (See the FTC’s Red Flags Rule as one example, requiring targeted businesses to have mitigation plans for identity theft.) Don’t get me wrong, this writer is not advocating for stricter criminal penalties, or some kind of high mandatory minimum sentence for the villainous identity thieves, or even that we should buy a lock and live in a cage – it’s just that current events bear observing.

Perhaps more creative measures are required to nab this newfangled thief. Who knows, maybe smart offensive strategies on the part of consumers and businesses will ultimately even offset the growth of identity theft!

Maybe it’s Pollyanna of me, but I can envision a video strategy game where the chivalrous prince outwits the cunning identity thief’s attempt to invade the castle via the king’s identity… and not just by buying Lifelock.

Follow Michael McCoy at www.twitter.com/mccoynews

McCoy in the News

Michael McCoy, co-author of The Silent Crime: What You Need to Know About Identity Theft is now in Orlando, Florida for an industry conference and for several presentation's on identity theft.  Below is a link that will give you all the details to Michael McCoy's upcoming and recent interviews on Florida radio and tv.

http://www.pplmediaroom.com

Use the Michael McCoy calendar link to keep up to date on McCoy's travel schedule. Thanks and hope to see you in a town near you. 

To request Michael McCoy to speak in your area send a email to insurancenow@hotmail.com

Thanks.

Michael McCoy

Customize Your ID Theft Service

"Customize Your ID Theft Service"

 

Over the years, dozens, if not hundreds, of so-called "identity theft protection services" have been developed, with only a handful having any real substance.  Many of these companies have either gone bankrupt or have changed their names and re-presented themselves like how ID Rehab changed into ID Watch Dog.  What if, instead of marketers just reinventing the same wheel, YOU could customize your own identity theft protection service??  What would you like to see included?  Here's your chance!

 

I want to hear from you, the consumer -- what types of features are important to you in an "identity theft protection service?"  Send all your suggestions to insurancenow@hotmail.com and be sure to mention what product or service you may already have. 

 

It is time to get serious and build the product that will best serve you, the consumer.  Our research at Iowa State University is taking a REAL look at what is fluff or perception only and what is real substance.

 

Remember the old adage, "you can't complain if you didn't participate."  This is a chance to customize the response to identity theft in a way that will truly meet the needs of the end user and not just the design team of the developer.

Sound Off!!

email me @: insurancenow@hotmail.com

Red Flags Or No Red Flags, Businesses Need To Act

The FTC may imply that part of the latest Red Flags enforcement delay is to await clarification which pending legislation may bring, but the reality is that the legislation is purely an appropriation consideration not an appropriateness one! In other words – for the pending legislation to consider whether or not certain potential indicators of data fraud in the workplace ought to require attention or not begs the question. Of course they should! The real issue is whether the needed attention can be afforded.
According to the Privacy Rights Clearinghouse’s infamous “chronology of data breaches,” over 300 million data breaches have taken place between April 20, 2005 (the date it began tracking breaches) and the time of this writing. www.privacyrights.org Assuredly, if any of the victims of those millions of data breaches were asked if their data was less worthy of protecting than others the answer would be NO!
The Red Flags Rule, as it’s commonly known, is designed to ensure that entities that extend credit detect, prevent and reduce cases of identity theft under penalty of fines. http://www2.timesdispatch.com/rtd/business/local/article/B-FLAG29_20100528-221006/347604/
Originally passed in 2008, the FTC just announced that enforcement of its Red Flags Rule is yet again delayed – this time allowing compliance through December 31, 2010. http://tampabay.bizjournals.com/tampabay/stories/2010/06/07/story7.html
The pending legislation will determine if it ought to extend to workplaces with fewer than 20 employees, but common sense would tell us that protection from identity theft ought to be extended to all. If common sense dictates that, then, Red Flags or no Red Flags, all businesses ought to do everything they can to protect data on their own – for even if applicability is decided, monies to assist may or may not be attached. http://www.ftc.gov/bcp/edu/microsites/redflagsrule/RedFlags_forLowRiskBusinesses.pdf

By Sue B Martines, J.D.

Book Review Preview – “Cyber War,” by Richard A. Clarke and Robert K. Knape, 2010

Written by two gentlemen from intentionally disparate generations – a tricenarian (someone in their 30’s) and a sexagenarian (someone in their 60’s), as though modeling for us the evolution from a relatively theoretical threat to a very real one, unpeel not only the chronological journey but also the practical impact of a modern day cyber war. Imagine your city’s system of traffic signals being out of sync due to lengthy blackouts, or your financial records being rearranged or pipe system exploding??
Yes, indeed, this would be a different kind of war. Authors Clarke and Knape posit that US civilians have one of the greatest chances of high impact in such a cyber war, and in fact, that countries are already positioning themselves for battle. And these writers should know – Clarke served as a counterterrorism advisor to both Presidents Bill Clinton and George W. Bush, and Knape won a prestigious Fellowship at the Council on Foreign Relations to study cyber war.
Our own Pentagon, the authors recap, admit to thousands of “pings” a day upon their computer armor – probes from foreign computers seeking to penetrate where weaknesses may lie. And on occasion, they succeed – fighter planes not yet in the air have had their details hacked into. And our nation’s very own computer supply chain is global and not necessarily trustworthy they point out… (for example, even while you’re reading this article, your computer could be “drafted” into a cyber war against a foreign bank, without your even being aware).
Some solutions are presented that may benefit readers – for instance, if you’re going to make purchases online, use a card with a low limit used solely for that purpose, they suggest; use your work computer at work, and your home computer at home; and make sure your online bank uses more than just a password for its security protection. But how would one protect from the story outlined in Cyber War?
Their book describes a supposedly hypothetical scenario where hackers incapacitate the US from behind their computer screens. In an NPR “Fresh Air” interview, author Clarke admits he cannot explain why such a hypothetical situation hasn’t already come to pass . Couple that fact with the point that the government is predominantly focused on protecting our nation’s defense capabilities… This writer can’t help but reminisce upon the Y2K preparations and wonder about the value of their revival…
Reviewing, Cyber War: The Next Threat To National Security And What To Do About It, Copyright 2010, by Richard A. Clarke and Robert K. Knape, published by Harper Collins, and as reviewed on NPR.org.
Sue B Martines, J.D.

Sleuthing Your Own Employees

Are you sure your very own employees are not divulging non-public information on social networking sites such as Facebook, Twitter, MySpace or LinkedIn? There are certainly potential issues relating to the appropriateness of social networking while on-the-job (addressed in an earlier article on this blog), but more and more employers have a presence on these trendy sites and in many instances, encourage it. However, there may need to be protections for your business from your very own employees according to a Blogger News Network, April 6, 2010 article on the topic. (http://www.bloggernews.net/124226)
Really -- who needs thieves, when our own employees can be duped by users of crafty social networking sites to share logins and passwords to our company network. The above-referenced article describes one test of such a fact pattern which found nearly half of all the employees tested fell for the demands of a well-crafted, illegitimate duplicate site of their employer’s.
It’s nevertheless hard to put too much blame on the vulnerable employees – the duplicate site looked like very credible outreach from their HR department. And a recent Time Magazine article reported 70% of US HR officers reported utilizing social networking sites to screen employees. (“Social Networking Sites Can Lead to Legal Pitfalls,” http://www.bizjournals.com/dayton/stories/2010/04/05/focus3.html?b=1270440000^3132331) This begs the point that internal policies for any workplace can only help give guidance in this situation.
Because we can’t expect the social networking sites to do our sleuthing for us! As the Blogger News Network story suggests, employers ought best appoint a site administrator to oversee work-related online employee interfacing for the time being. And the best legal defense remains the best offensive strategy and taking extra measures to protect access to company websites and having a corporate policy/training on the topic just makes sense.
Sue B Martines, J.D.

Educate Girls and Reduce ID Theft Risk

Arguably , if you better educate anyone about risk, you reduce the potential harm. So why focus on girls? Pick the highest risk group, and generate exponentially greater potential payoff is why. One recent study found women to be 26 percent more likely to be victims of identity theft and fraud than men. (Javelin Strategy & Research’s, 2009 Identity Fraud Survey Report, http://www.mybackgroundcheck.com/blog/post/2009/02/Why-Women-Suffer-More-Identity-Theft-and-Fraud-than-Men.aspx.)
That same study attributes the results to women making purchases more frequently “in-person,” as opposed to online, than men, and to their being three times more likely to report being a victim than men!
In Greg Mortenson’s book Stones Into Schools (the sequel to #1 bestseller Three Cups of Tea), wherein it’s undertaken to build schools for girls in outlying parts of Afghanistan and Pakistan, it’s noted that the education of girls leads to increased income for not only the girls themselves but for their entire nation.
Knowing how identity theft can lead to losing the next most valuable asset after one’s health, it’s really not that far of a cry to see that focusing on girls’ education can not only improve basics like income level and health, but the ability to keep what is so hard gotten, like one’s identiy. Identity theft need not disproportionately impact women in any part of the globe when education can be a potential cure.
Sue B Martines, J.D.

Social Networking Deception Leads to ID Theft?

So, first of all, Classmates.com agrees to a proposed settlement of $9.5 million to users who complained about its false advertising – you know the email – “hey, someone’s been looking for you…and if you just upgrade from the free to the subscription membership, we’ll tell you who it is…”

And just about the time you realize you’ve been duped and no one’s looking for you, you’ve already enrolled with your credit card online…

But then you find your personal information on the site may have gone inappropriately public and there are unexplained charges on your credit cards?! Whoa.

It’s no wonder Classmates.com’s problems have now snowballed into a class action lawsuit for invasion of privacy, the above-referenced consumer settlement offer awaiting court approval, and congressional inquiries into the unexplained charges, according to a socialnetworkinglawblog.com article.

Juxtapose that with my nearly 12 year-old daughter asking today whether or not she ought to accept any of the Facebook and similar social networking type invitations to join which she receives on a daily basis. Hmmm. What so often begins as an innocent interest in connecting with friends, classmates, business colleagues, etc., can too often now digress to identity theft, fraud or criminal consequences.

Us social networkers need beware, but so do the site sponsors.

Sue B Martines, J.D.

Top Things That Computer Users Should Fear in 2010

Can the Internet be a scary place? Yes, and it may be an even more dangerous place this year, according to this MSNBC story.
The daunting story makes predictions including:

1. Anti-virus products will have more difficulty screening out viruses
2. Increased buying of fake anti-virus software
3. Social networking sites will continue to be platforms for impersonation/identity theft
4. Spam numbers will keep climbing
   

Even though this may not be the most uplifting news, it’s important that the Internet always be treated as a powerful communication tool of seemingly endless possibilities - both positive and negative.

Caution is always the key to safe surfing. If something seems suspicious, avoid it and take precautions to safeguard all your confidential information, both online and during in person interactions.

It’s one thing to hope that these predictions don’t come true; it’s quite another to ignore the warnings and not take steps to protect your identity and leave the door wide open for cyber criminals.

- - - - - - - - - - - -

Written by Stacy Whelchel, a Corporate Writer at Pre-Paid Legal Services, Inc. Pre-Paid Legal's signature products, including the Life Events Legal Plan and Identity Theft Shield, serve more than 1.5 million families in North America.

FTC Shows That #'s Do Not Lie

In the FTC's annual Consumer Sentinel Network (CSN) report that was released in February 2010 shows identity theft was the number one complaint category (21% of all complaints) in 2009.

Social Networking and Some Employment Law Snafus (Part 2)

     In this article, we try “round two” of stumping the HR person!  That is to say -- let’s take a look at a few additional employment-related social networking challenges, and how an HR person (or supervisor) might best respond.

1.     Management allows some online posting during work hours, but notice one employee who averages 100 Tweets per day on Twitter.

Does it matter if it is part of their job to post Tweet updates?  How many posts are too many, is the question!?

A reasonable course of action by any standard, would be to warn the employee of the excessive number of posts.  Thereafter, it needs to be determined whose function it is to monitor such media outreaches – HR? Corporate Communications? IT? – which may depend on resources.  Larger employers may consider having a media department that would oversee such outflow.  Tweets can positively impact business! 

One Wall St. Journal article noted that the number of Tweets regarding a movie release does affect the numbers at the box office!

2.      You receive a phone call saying one of your employees has been posting derogatory comments on her ex-husband’s blog.

Does it matter how high-profile the employee or ex-spouse are?  What about whether it was posted during work hours or whether it depicts a company uniform or logo?

Ask for evidence of the postings!  (Such as a print out of the posting.)  Certainly one would need to determine whether or to what extend the company was identified within the post, and whether it was posted during work hours, and warn accordingly.

3.      What if you WANT your employees to help grow your business through social networking??

Are you going to want to require that employees join a social networking site?

A good solution for this may be to identify which sites would be acceptable for business purposes, (some favor Linked-In, for example).  You will need to decide if such postings are mandatory (in which case, you need to be prepared to pay for this time), or optional (in which case, you need to decide if work time can be allotted for this).  In any event, some guidelines ought best be established regarding content, and all postings should be monitored. 

Some employers are finding ways to block social networking, although that can turn away employees as well!  Why not have a separate business page from personal, on those sites that allow it?!

Continue your feedback…we may have a social networking and employment law snafu, part 3 at some later time! 

As Promised Ohio

Attendees of Today's Training Event,


Thank you to everyone that came to the training today in Columbus, Ohio. Nearly 200 individuals had countless other option on how they could spend their Saturday morning and yet they chose to join me at a wonderful training. 
I promised the attendees that I would post on this site where I get some of my statistics, so here you go Ohio.


1. www.thesilentcrime.com - Many experts and guest writers contribute to this site, so browse around and look at the archives. I often learn new things from the numerous contributors. Sign up for the RSS feeds.


2. http://www.ftc.gov/bcp/edu/microsites/idtheft/reference-desk/national-data.html  - This site is run by the Federal Trade Commission (FTC) and is a great source for National statistics and laws and rules pertaining to identity theft and data security.


3. www.twitter.com/mccoynews - I often tweet current events and interesting facts, among other things. Again, don't forget to sign up for the RSS feed and have tweets delivered to your cell phone.


4. www.youtube.com/mccoymichael


5. http://www.google.com/alerts  - Place google alerts on subjects like; identity theft or data breach.


More sites and articles to come.


Thank you for the warm hospitality in Columbus and I look forward to visiting Ohio in the future.


Best,
Michael McCoy

Social Networking Safe?????

Thieves attempting to acquire personal information for identity theft increased 240% on social networking sites from 2008 to 2009.

FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule

FTC Reports -

At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC.

On October 30, 2009, the U.S. District Court for the District of Columbia ruled that the FTC may not apply the Red Flags Rule to attorneys. Today’s announcement that the Commission will delay enforcement of the Rule until June 1, 2010, does not affect the separate timeline of that proceeding and any possible appeals. Nor does it affect other federal agencies’ ongoing enforcement for financial institutions and creditors subject to their oversight.

See FTC Entire Statement at: http://www.ftc.gov/opa/2009/10/redflags.shtm

Follow Michael McCoy on Twitter at : www.twitter.com/mccoynews

Its Not always about the money...

Sometimes you need to sit back and wait for things to develop. Acting to fast or rushing to a conclusion can sometimes get you in trouble or worse those you are teaching. If you are going to be in the "teacher" role, you must me fact based. Its ok to be proactive but that is not the same as reckless.

If this legislation is passed in the Senate it will change the landscape of the industry. I say, common sense seems to be prevailing.

Full Article can be found at - http://www.scmagazineus.com

The U.S. House of Representatives this week unanimously passed legislation that would exempt certain small organizations from complying with the Red Flags Rules.
The rules, developed in accordance with the Fair and Accurate Credit Transactions Act of 2003 (FACTA), require financial institutions and other organizations classified as “creditors” to develop programs to identify, detect and respond to indications of identity theft. A bill passed this week would amend FACTA and exclude health care, accounting and legal practices with 20 or fewer employees from having to comply with the regulations, set to be enforced starting next month.

Also, the bill would create a provision to enable other businesses to apply for exemption. To be exempt from complying with the regulation, the bill stipulates that a business would have to meet one of the following guidelines: It must know all of its customers or clients individually; it must only perform services in or around the residences of its customers; or it must not have experienced incidents of identity theft, and identity theft must be rare for businesses of its type.

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Without proper identity theft coverage you may feel naked when you become a victim.