On June 1, 2005, a new provision of the Facta Law went into effect that gives a great deal of responsibility and monetary liability to business owners. Some business owners understood that they had additional responsibility with regard to safeguarding information and implemented document destruction policies they thought would safeguard them from liability. Unfortunately, document destruction was only part of the requirement. According to some published information, only 2% of identity theft is a result of "dumpster diving". That leaves a 98% chance of compromise to "other" means. Effective June 01, 2005 a new provision of the FACTA Law became law. This provision gave financial liability to any person or business that employs even "one" person, or, has "one" client who as a result of their action or inaction, allows confidential informatiion to be compromised by thieves, hackers, mistakes or otherwise. The financial liability is for actual damages and also includes Federal fines of up to $2500.00 and State fines up to $1000.00 per person, per incident.
According to John Gardner, co-author of Chicken Soup for the Entrepreneurial Soul, “The damages are devastating to any business." and the FACTA law assigns responsibility directly to you, the business. Under Facta doing nothing today will cost you much tomorrow.
Business Week says that the average damages for Identity Theft victims are $92,000.00 and up, per person. Using this statistic, if you have 10 employees lose their identities, then on average, your Facta Law liability could be $920,000.00 not including the federal and state fines. How many employees does your company employ? FACTA Law requires action by decision makers or the liability damages could be financially devastating for a company.
So, what if you do shred all potential employee information, and take all necessary precautions to protect your past, current, and future employees’ identities, and the information still gets out somehow? Under the FACTA law, you could still be held responsible.
Companies must render the information that they maintain.....useless. There is a way. A Pennsylvania company is promoting a program that will help make any information that a company maintains on employees and or clients....unusable. The concept is somewhat simple. You can access this information by entering "Facta Law" "Facta Laws" or "Facta Liability" as a search term on almost all of the major search engines. You will find the information that you need under "How Facta Impacts Your Business". The solution is relatively simple...protect your employees and clients...and protect yourself in the process. Facta Law liability is not somthing to ignore. Facta has assigned a great deal of liability to business's and it cannot be ignored. You can also contact Advanced Progressive Solutions for more information. Go to www.advancedprogressive.com and protect your employees who are your greatest asset, while also protecting your business. "Dont Wait Until The Damage Is Done".
