The Horrid and Exorbitant Spectre of Identity Theft
April 5, 2007
Kelowna, BC
For immediate study – or at least a quick look-see
Fraud factoids:
- While the volume of online fraud is increasing, its percentage of online retail sales is decreasing annually. In 2006 the value of online fraud will be 1.4% of total online sales, down from 1.6% in 2005 and 3.6% in 2000. (eMarketer, Dec. ‘06)
- Sixteen percent of adults say they have had their credit or debit card used without their permission by someone they didn’t know (Harris Interactive, May ’06)
Don't Lose Yourself (or Your Customers) to Identity Theft
In late 2006, the retail giant TJX revealed that a data breach had compromised some 45.7 million credit and debit cards – the biggest rip-off of customer records ever.
TJX is the parent of several big chains including 185 Winners and 69 HomeSense stores in Canada. If you shopped there on credit or debit from January 2003 through June 2004, your personal information may have been compromised – even TJX doesn’t know the full extent of the breach. Check your records!
Identity theft is an ugly, scary thing. Armed with your personal data, crooks can redirect your mail, transfer bank balances, apply for loans and credit cards, purchase vehicles, open cell phone accounts and order gourmet pizzas, in your name.
The TJX perps relied on sophisticated crimeware (software that grabs account info) and, very likely, on dishonest insiders. In the dark and slimy online underworld there lurk viruses, spyware, ‘phishers’ (scam artists posing as legit businesses), "social engineers" (honey-tongued grifters) and underground networks that auction off the reams of ill-begotten data. Potential treasure troves reside in unshredded garbage, mailboxes and stolen wallets and on junked but unwiped hard drives.
Victims of ID theft pay dearly with grey hairs, damaged reputations and ravaged credit ratings. If you suspect that you’ve been victimized, contact the police and the Equifax Canada and TransUnion credit bureaus.
Breaches can be devastating for negligent businesses, too. Forrester Research determined that legal fees and reparations range from US$90 to US$305 per lost record – TJX might eventually have to cough up a billion big ones.
With the increasing prevalence of ID theft, public awareness has likewise grown. Customers and employees expect your vigilance. Governments demand it.
In BC, Canada, the Personal Information Protection Act (PIPA) specifies how organizations may collect, use, disclose and secure personal information. Importantly, this also includes names, home and email addresses.
In part, PIPA (www.oipcbc.org) requires that all organizations
- obtain consent for collecting, using and disclosing personal info.
- collect it only for reasonable purposes.
- use and disclose it only for the purpose for which it was collected.
- if asked, provide an individual access to, and info regarding, its existence, use and disclosure.
- ensure it’s security, accuracy and completeness.
- develop a plan and designate a person for PIPA compliance.
- resolve personal info management complaints quickly.
Better check your state or provincial statutes and ensure you comply.
Please do note that if your company accepts, processes, or stores credit card information from American Express, Discover, MasterCard and Visa, it must meet Payment Card Industry (PCI) Compliance Standards or face nasty fines or sanctions. Look at www.pcicomplianceguide.org.
As TJX is learning (to the tune of US $20 million and rising) non-compliance and its fallout are devastating – both to the offending organization and to its customers who will rail and curse every time they hear mention of them.
Safe 'n secure personal information equals peace of mind. Respect your customers by exercising due diligence. Protect yourself by dealing only with organizations doing the same.
Wishing to move up to a PCI compliant ecommerce solution? We've got what you need.
Please contact:
Duane Bentley, Marketing Manager
Tel +1.250.763.8884
Free +1.877.763.8844
media@acromediainc.com
About Acro Media
Acro Media is a professional Web design company and full service Web marketing firm delivering:
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The privately held firm has 31 employees, and has earned international recognition among "Fortune 500" companies for its Internet solutions: a unique combination of graphic design, Web software and communication acumen.