Are employers protecting their employees from ID fraudsters?

The discovery that criminal gangs have stolen the identities of employees at Network Rail and Job Centres, and subsequently committed online benefit fraud, raises serious concerns about the safety of personal data that is held by employers. In particular, payroll data which includes bank account details, home addresses, etc.

Identity theft has major consequences for the individual whose identity is stolen and leading ID fraud expert, MyEquifax, is warning that the issue needs to be at the top of the agenda for every employer.

ìEmployers should ensure they have strict controls in place to protect employeesí personal dataî, confirmed Neil Munroe, External Affairs Director of leading credit and ID fraud information expert, MyEquifax. ìIn the case of the online benefit fraud, the fraudsters apparently created false bank accounts using employee details and those employees will now have grave concerns about how this might affect them in the future.

ìSome of those affected had their details stolen up to 2 years ago, and they could find that their credit rating has been seriously affected. This is not a minor issue; it could prevent someone from getting the credit they deserve or need in the future.î

Employers have a responsibility to ensure that employees are not vulnerable to any breach of personal data. But, unfortunately, the fraudsters are often one step ahead of the latest security measures and law enforcement actions. It is therefore important that, if a breach does occur, employers can give staff as much support and peace of mind as possible that this will not have an impact on them in the future.

There are a number of easy to use tools that give individuals the ability to get their credit information back on track quickly if any breach does occur. For example, MyEquifax operates the Protective Registration Service on behalf of CIFAS, the UKís Fraud Prevention Service. Anyone affected by ID fraud can contact MyEquifax on 0870 010 2091 and a notice will be placed on their credit file indicating that documents have been stolen and that they may therefore be at risk of identity fraud. There is a one-off cost for this service of 11.75.

In addition, they can sign up to Equifax Credit Watch which monitors an individualís credit report and alerts them to any changes as soon as they happen. For just 6.50 a month, individuals will receive daily alerts by text or email on any changes to their credit file. This includes whenever searches are made for a credit application in their name, changes to credit account balances, amendments to electoral roll information, the addition of County Court Judgments, etc. They will also have access to unlimited copies of their Equifax Credit Report ensuring that they can fully understand the information that is affecting their credit status.

ìIdentity fraud is a silent crime and most individuals often donít realise that they have been a victim for up to a year or until they apply for creditî, confirmed Neil Munroe. ìIt can take up to 300 hours of frustrating phone calls to deal with banks, credit card companies and other lenders, incurring enormous personal time, effort and cost. That is why it is vital that companies do everything possible to protect personal data on employees ñ and that they give staff all the support necessary if a breach does occur.î

To arrange an interview with Neil Munroe on the subject of ID Fraud please contact either Claire Foster or Kate Clements at HSL on 0208 977 9132 or email claire@harrisonsadler.com