FREQUENTLY ASKED QUESTIONS AND LINKS
How bad is the identity theft crisis in the United States?
Some call it an epidemic. Let the experts tell you.
You decide.
IDENTITY THEFT LINKS:
Federal Trade Commission
http://www.ftc.gov/

FTC’s Identity Theft Site
http://www.ftc.gov/bcp/edu/microsites/idtheft//

http://www.ftc.gov/bcp/edu/microsites/idtheft/downloads/FTC_DDD_One-pager.pdf

The Identity Theft Data Clearinghouse is the federal government’s database for tracking identity theft complaints.
http://www.consumer.gov/sentinel/idtchart.htm

Privacy Rights Clearinghouse (PRC), Nonprofit Consumer Information and Advocacy Organization
www.privacyrights.org

Identity Theft Resource Center® (ITRC) is a nonprofit, nationally respected organization dedicated exclusively to the understanding and prevention of identity theft.
http://www.idtheftcenter.org

 How many people are affected?
According to the Gartner study the 2006 victim population was at 15 million victims. That means every minute about 28 ½ people become a new victim of this crime, or a new victim in just over 2 seconds.

What is the cost to business?
Studies on the total cost of identity theft vary. One study said that identity theft cost U.S. businesses and consumers $56.6 billion in 2005.
Network Computing, Don MacVittie, Aug. 31, 2007. Javelin 2006 Identity Fraud Report

What is the cost to victims?
In 2004, victims spent an average of 330 hours recovering from this crime, often over a period of years compared to 600 hours in 2003. In 2004 the total reported hours ranged from 3 hours to 5,840. This difference is due to the severity of the crime- a lost credit card vs. the use of your Social Security number or information to be your “evil twin.”
ITRC web site

How many large breaches have been publicized and how many people have been potentially affected?
In 2007, through 9-18-07, there were in excess of 284 publicized breaches affecting nearly 76 million individuals.
In 2006, there were in excess of 315 publicized breaches affecting nearly 20 million individuals.
In 2005, there were 158 incidents affecting more than 64.8 million people.

What are unexpected secondary effects?
Even after the thief stops using the information, victims struggle with the impact of identity theft. That might include increased insurance or credit card fees, inability to find a job, higher interest rates and battling collection agencies and issuers who refuse to clear records despite substantiating evidence of the crime. This “tail” may continue for more than 10 years after the crime was first discovered.

What are the threats to my business?
The threats are many. You can order these publications to help:
  • Take Charge: Fighting Back Against Identity Theft (PDF 4.9MB)
  • Information Compromise and the Risk of Identity Theft: Guidance for Your Business (PDF 152KB)
  • Protecting Personal Information: A Guide for Business (PDF 3.47MB)

Are the FTC and the government challenging companies that fail to protect consumers sensitive information?
“At Least 800 Cases of Identity Theft Arose From Company’s Data Breach”
Consumer data broker ChoicePoint, Inc., which last year acknowledged that the personal financial records of more than 163,000 consumers in its database had been compromised, will pay $10 million in civil penalties and $5 million in consumer redress to settle Federal Trade Commission charges that its security and record-handling procedures violated consumers’ privacy rights and federal laws. The settlement requires ChoicePoint to implement new procedures to ensure that it provides consumer reports only to legitimate businesses for lawful purposes, to establish and maintain a comprehensive information security program, and to obtain audits by an independent third-party security professional every other year until 2026. “The message to ChoicePoint and others should be clear: Consumers’ private data must be protected from thieves,” said Deborah Platt Majoras, Chairman of the FTC. “Data security is critical to consumers, and protecting it is a priority for the FTC, as it should be to every business in America.” Released January 26, 2006.
http://www.ftc.gov/opa/2006/01/choicepoint.shtm

What is FACTA (Fair and Accurate Credit Transactions Act) and whom does it affect? (Contact competent legal advice)
All businesses and employers who collect private consumer information—including employee data—can fall under this law.

Are there penalties for non-compliance?
FACTA provides for a range of civil liabilities and penalties for noncompliance. Some possible consequences provided for by the FTC for non-compliance to FACTA:
  • Civil Liability
  • Class-Action Lawsuits
  • Federal Fines
  • State Fines
http://www.privacyrights.org/fs/fs6a-facta.htm

Did you know?
In May 2006, the President established an Identity Theft Task Force, co-chaired by the Attorney General and FTC Chairman Deborah Platt Majoras, to develop a comprehensive, national strategy to combat identity theft and recommend ways “to improve the effectiveness and efficiency of the federal government’s activities in the areas of identity theft awareness, prevention, detection, and prosecution.

The Commission receives between 15,000 and 20,000 contacts a week from consumers who are seeking advice about how to recover from identity theft or consumers seeking advice about how to avoid becoming a victim.

ID Theft is not only a problem, it is a national crisis.

What can we do to fight this crime of ID Theft?
Insurance professionals, employers and employees will need to practice:
  • Awareness - be aware of the problems as benefit brokers and agents, employers and individuals.
  • Prevention - implement prevention programs that can help minimize the risks for you and your family as well as your business both at home and at work.
  • Implement monitoring of your public data
  • Protection - Individuals must buy protection since Identity Theft cannot be 100% prevented and it will never go away.
  • Restoration- If ID theft strikes, you will need the help of ID restoration specialists to fix the problems timely and efficiently.
  • Vigilance – Everyone must be vigilant before it happens, if or when it happens, and after it happens.

What will SAFETYnet do to help?
With an employer purchasing SAFETYnet for their employees you and your client will implement the most comprehensive plan available against ID Theft. You, your clients, and employees will have:
  • Awareness
  • Prevention with professional ID monitoring
  • Protection with insurance coverage against certain monetary losses
  • Restoration by professionally trained ID Theft specialists
  • Vigilance by brokers, agents, employers, and employees backed by a team of professionals and specialists

What is SAFETYnet Plus?
We add free and discounted legal, accounting, financial and credit counseling, tax preparation and advice, and EAP. These are all services that may be needed in the event of ID Theft. A great value and savings to both employers and employees even if no ID theft occurs.

How can SAFETYnet and SAFETYnet Plus be purchased?
  • Non-contributory-Recommended
  • Contributory
  • Buy-up
  • Voluntary-contact FinAff for more information
  • Rates based on number of employees/members
Who can buy SAFETYnet and SAFETYnet Plus?
Employers of 2 or more employees
Associations
Unions
Accounting firms for their clients
Financial planners for their clients
Businesses for their customers
Individuals-contact FinAff

What is the cost to employers if an employee (s) is a victim of ID theft?
This is not only a cost to victims but to employers as well. When ID theft occurs, whether it takes 3 hours or 5,840 hours to resolve, the employee will do most of this work during business hours. That is when everyone an employee needs to contact for resolution works as well, Monday-Friday 8-5. What are some the costs depending on severity of the ID theft?
  • Absenteeism
  • Work productivity and costs by both employee and coworkers or temporary help.
  • Emotional and mental issues
  • Legal issues to employer (What happens if ID theft occurred by someone connected to your business?)
  • Additional costs to your medical plan by employee or medical ID theft
  • FACTA issues
  • Class action issues
  • Fines and / or penalties by state and federal governments

Why should insurance professionals and other professionals get involved with ID Theft protection for their clients?
  • The benefits industry provides employee benefits of life, medical, and disability to protect against catastrophic loss. Other benefits like dental, vision etc help the employee pay the way. These have been around for decades. And yet, we have not offered a major protection that everyone should have, to protect against potential huge costs or catastrophic loss if they are alive, healthy, and working.
  • Don’t we have a responsibility to show each of your clients this coverage is at least available?
  • As financial planners to individuals and employers, we provide advice and products to clients to protect them, their families, and their hard earned assets and businesses. Do they need SAFETYnet or SAFETYnet Plus?
  • As property and casualty advisors to business, you protect the owners and their business against financial ruin. Could SAFETYnet implementation lower their P & C premiums and liability?
Why sell and why buy SAFETYnet™ or SAFETYnet Plus™?
  • It’s a new revenue source for you and your company.
  • It’s easy to implement especially on a non-contributory basis.
  • It’s a low service requirement benefit for you and employers, yet extremely visible and valuable to employers and employees.
  • It can increase employee productivity, good will, morale, and peace of mind.
  • It can decrease employer’s potential liabilities. (Consult an attorney or tax attorney)
  • It will decrease the potential or at least minimize Identity theft and associated costs from occurring.
  • Remember the statistic, the average “REPORTED” amount paid in 2006 was $3,257? 184 reported a loss of $1,000,000 or more. How many can afford even $3,257 or more?
  • If ID Theft does occur, SAFETYnet or SAFETYnet Plus can help minimize costs, time, actual losses, and additional expenses to both the employee and employer.

I am an employer and I just cannot afford to pay any more for my company’s benefits. How can I afford this important benefit?
  • Quite, simply, how can you afford not to buy or at least share in the cost of SAFETYnet or SAFETYnet Plus for your employees and your company? Consult your insurance professional, accountant, or attorney.
  • Financial Affiliates has priced SAFETYnet and SAFETYnet Plus to be extremely competitive for all size employers and organizations. Consult your insurance advisors for a quote or contact us.
  • Based on a 40 hour week (who works that any more?) and the size of your company, the cost will be a surprising pennies per hour. Consult your insurance professional for a detailed quote.


* Info from www.idtheftcenter.org

Talk to your representative or contact Mike St. Clair, Vice President Financial Affiliates™ at 877-323-6747 or mstclair@finaff.com

[SAFETYnet™] [REQUEST MORE INFORMATION] [ABOUT US] [CONTACT US]

All financial affiliates are independent contractors of Financial Affiliates™. Financial Affiliates™ is a division of Family and Friends Financial™, Inc.
© 2008 Financial Affiliates™. All Rights Reserved.