Your phone rings. It's Special Agent Bert Ranta. The FBI is investigating a crime ring involved in widespread identity theft. It has led to millions of dollars of credit card and loan losses for lenders, and havoc in the lives of the 10,000 victims.
Identity Theft: The Next Corporate Liability Wave?
The FTC estimates that over 24 million people in the United States have had their identity stolen. Using the $11,000 damage figure per case developed above, that represents over $26 billion of potential liability if fault can be ascribed to the data holder. Customer and employee databases are prime targets for identity thieves because a single vulnerability in a company's information security can yield access to personal data on thousands of persons. In addition to the growing threat of class-action lawsuits, new laws are coming into effect to hold organizations responsible for securing personal data. Companies should evaluate this risk and consider taking action to reduce their potential liability.
By
Toby J.f. Bishop And John WarrenThis premium content is locked for Business Crimes Bulletin subscribers only
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