Posted by: Professionals In Human Resources Association (PIHRA) | July 2, 2010

Identity Theft- Employer Liability in the Workplace

Recently, Ben Bernanke, Chairman of the Federal Reserve was a victim of identity theft.  Someone was cashing fraudulently created checks that contained his account number.  I think it is safe to say that if it could happen to the Chairman of the Fed, it could happen to any one of us.

And it is…at an increasingly alarming rate.


  1. Identity Theft is the number one crime in America affecting one out of six people, one out of four in California.
  2. More money is being made on the streets selling illegal identities than illegal drugs.
  3. 85% of all identity theft occurs in the workforce.
  4. Children’s Identities are the #1 target of the identity thieves.

People (employees) are being falsely arrested, getting letters from the IRS regarding taxes they owe for work in States they have never even been to, and more alarming, are receiving adverse medical treatment.  When you add this to the more common “financial” identity theft we citizens are more familiar with, well it is putting employees between a Rock and A Hard Place!

Did you know…?

88% of Employees are stressed about financial & legal matters.

33% of Employees have reported taking time off of work (average13 days/year) to cope with these problems.

“Stress” increases the use of medical benefits, driving up employer costs while reducing    profits?

The Federal Trade Commission, in its effort to slow down the crime, has issued a “Guideline for Businesses”.  This guideline compiles various aspects of the Graham, Leach, Bliley Act, The Fair and Accurate Credit Transaction Act, (FACTA) The FACTA Red Flags Rules and the Fair Credit Reporting Act.  The FTC requires all businesses to take certain steps to “protect what they collect”.  Failure to take these steps may result in fines, fees, and penalties from the FTC, class action law suits from the victims, and public knowledge of the data loss which can affect future business and consumer confidence.

The FTC says “A Well Trained Workforce is the best Defense against Workplace Identity Theft and NPI COMPLY specializes in Workplace Identity Theft Safety Training, employee behavior modification.

For more information on how you can protect your business and employees contact:

Bill Ferrell, CITRMS
Certified Identity Theft Risk Management Specialist
(818) 590-1590



  1. I heard your info @ a medical facility I worked at. I’m retired now & wondered if the same package is offered to individuals.What would the package include & the cost.

  2. info on cost package to individuals no longer working0retired

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