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Identity Theft: The Next Corporate Liability Wave?

By Toby J.F. Bishop and John Warren

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. By identifying links between the victims, the FBI has discovered where the personal data appear to have come from: your company. The victims are some of your customers.

Your mind begins to whirr. Are there other customers affected who haven't been identified yet? Is it a hacker or an inside job? Is your company also a victim here, or could it be on the wrong end of a class-action lawsuit?

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