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| Welcome | Welcome to the June 2006 edition of the Credential Check Examiner! This month we analyze the recent breach of U.S. Veterans' data, new legislation that impacts employers, and the plusses and minuses of having employees work from home..
As always, please feel free to reply with your comments and suggestions!
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| US Veterans Suffer Breach of Personal Information
|  In the latest and most voluminous breach of Social Security information to date, as many as 26.5 million US veterans were put at risk of identity theft when a laptop and an external hard drive were stolen from the Aspen Hill, Maryland home of an employee of the Department of Veteran Affairs. The theft exposes veterans discharged after 1975 and some of their spouses.
“Although the possibility of identity theft is possible,” said Todd N. Krost, Business Development Manager for Credential Check Corporation. “Until the actual crime of identity theft occurs, when someone attempts to use the personal information of another for the purpose of fraud, there has been no crime or victim of identity theft.”
Accordingly, authorities will not initiate any investigation related to identity theft until that crime occurs; authorities will be investigating the theft of the laptop and hard drive, which they initially believed to be a random burglary.
The Department of Veterans Affairs, in a questionable decision, has stated that it is not yet necessary for the affected veterans to take any action, such as initiating fraud alerts, contacting financial institutions, or canceling credit cards, but rather that they be vigilant in monitoring the activity of their bank accounts and credit card statements. Such a passive response will only detect attempts at identity theft after they occur; it will do nothing to prevent the crime from taking place.
Recommendation: Any potential victim of identity theft should contact one of the three main credit bureaus to place a fraud alert on their credit: Equifax: 800-525-6285; http://www.equifax.com ; Experian: 888-EXPERIAN (397-3742); http://www.experian.com TransUnion: 800-680-7289; http://www.transunion.com ; By notifying one bureau, the other two become alerted. An initial 90-day alert will be placed on your account, and an option of additional 90 day-extensions or a 7-year extension are also possible.
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| | Employers Held Accountable with Immigration Reform Legislation | The United States Senate approved a comprehensive bill in recent weeks related to immigration reform that will hold American businesses accountable in more ways than one. Specifically, President George W. Bush proposed the following accountability on the part of employers:
- Utilization of the online verification system known as Basic Pilot which allows employers to confirm the eligibility of new hires by checking the information provided on his/her employment application against Federal databases. Such a verification system would detect if personal information such as one’s social security number (SSN) or date of birth matched with the individual applicant being verified. Currently, immigration enforcement agents with the Department of Homeland Security are not informed when the Social Security Administration discovers a mismatch between a worker and the SSN he or she provides.
- Creation of a novice identification card for legal foreign workers, which would incorporate biometric technology including digital fingerprints in order to help make the card less susceptible to unauthorized tampering. Such a card would in return signify to employers that the applicant is who he in fact says he is, and is working in the United States legally.
- Stiffening the penalties for those employers who not only violate the law by knowingly employ illegal workers, but those who repeatedly violate the law would then be subjected to hefty fines. You can learn more about the above mentioned Comprehensive Immigration Reform Legislation, and the various viewpoints that surround this topic. Simply log in to the search engine of your choice and type in “Comprehensive Immigration Reform.”
Source: http://www.whitehouse.gov/infocus/immigration/
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| | Working from Home: Employee Benefit or Internal Threat? | The benefits of employees working from home for both employers and employees are well cited. Employer benefits include: increased productivity; reduced absenteeism, sickness, and stress; increased employee morale, commitment, and retention; and cost savings. Employee benefits are perhaps more obvious: greater flexibility in work hours; ability to devote more time to life outside of work; no commute. The lists go on and on. However, employers are swiftly beginning to realize the potential risks associated with allowing employees to work from home—particularly those requiring the access and use of sensitive customer, employee, and student information.
We are constantly seeing headlines reporting incidents of identity theft and the compromise of personal identifying information. Major organizations with hundreds of thousands of customers have been impacted by the loss or theft of unprotected information contained on employee laptops. The U.S. Veteran’s Administration, Fidelity Investments, and MCI Inc. are just a few who have faced the public relations nightmare that such compromises become and the costs associated are often intangible and incalculable.
Many of today’s data protection measures are technological in nature including sophisticated encryption methodologies. However, such measures are often not enough to completely secure sensitive identifying information. The tough lessons learned by the organizations above reveal some hidden threats associated with allowing employees to work from home. Many organizations do not have policies existing governing the appropriate handling of confidential information and the consequences associated with a breach of those policies. Even if policies exist, employees are often not made aware of or trained regarding their employer’s policies and expectations regarding data management. Employers invest a lot of time, energy, and resources in their most valuable asset—their employees. However, organizations must recognize the importance of remaining connected and committed to communication, especially with those employees who routinely work from home or carry a company-issued laptop containing confidential information.
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| | Know Your Score | While many employers have used credit scores to help screen applicants and determine their eligibility for employment, they are the principal tool lenders and other financial institutions use to determine credit worthiness. In addition, insurers, landlords, and even some healthcare providers also use them. Despite this increasing use and availability, the majority of Americans still do not know their credit score. Until the year 2001, credit scores were a closely guarded secret kept by credit bureaus. That all changed when Fair Isaac, the research firm that owns the mathematical formula used to calculate FICO scores, began allowing consumers to see their score. For as little as $14.95, consumers can now buy their credit score at Fair Isaac's website, www.MyFICO.com. There are other services available, such as credit score monitoring, which provides credit score alerts when one’s score changes so that improvement can be tracked for the purposes of refinancing or purchasing. “Monitoring your credit score and the information behind it is an easy way to protect yourself from fraudulent activity. The quicker you locate a fraudulent account, the less damage that can occur to your credit.” States Timothy Whiting, Director of Operations at Credential Check Corporation. Employers too, look differently at applicants with low scores. Imagine how many employers ask themselves the following question when considering a candidate with a low score: "If a low score suggests the applicant has had difficulty managing their money, how can I expect them to handle our money better than their own?" On the other hand, an incorrect score could cause an employer to disqualify an otherwise qualified candidate. While credit bureaus hesitate to say how many of their records are possibly inaccurate, consumer groups say the number is significant. Tip: If you suspect your FICO or credit report is inaccurate, report the discrepancy to one or more of the credit bureaus (see first article for credit bureau contact information). By law, only employers, not lenders, are not required to help credit an error. top
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| Quote of the Month: "The secret of joy in work is contained in one word - excellence. To know how to do something well is to enjoy it."
-Pearl Buck (1892 - 1973)
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| | Contact Information | If you are interested in obtaining additional information about these articles or the services offered by Credential Check Corporation, please contact one of the following individuals:
Thank you! We'll see you next month!
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