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Identity & Fraud October 30th 2015

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Identity & Fraud

As the popularity of internet shopping and online auctions grows, so the number of complaints about identity theft increases. Organizations need to protect their own and their customers identity. Any case of mishandling or theft of data can potentially damage a company’s reputation. What are the necessary steps organizations can take to protect their data in all of its forms, across platforms, and at different locations?

Common examples of online Identity fraud:

• Auction fraud

• Non-delivery of merchandise

• Credit card fraud

• Investment fraud

• Business fraud

• Nigerian Letter or “419” fraud

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Identity theft is a huge problem

The consequences of failing to protect data can be very serious. For example, identity theft is a huge problem for consumers and the firms that serve them. In the U.S. alone, five percent of adults — about 10 million — are victimized each year, with total losses of about $50 billion. U.S. firms spend another $50 billion a year on identity-theft-prevention measures. Firms must take steps to ensure that any personal information in their possession remains secure, and that their employees understand these safeguards and how to detect and prevent potential threats.

Source—Reuters

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The problem is real

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In the news

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Top Agenda item for European Commission

Protection of personal data

In January 2012, the European Commission proposed a comprehensive reform of data protection rules in the EU. The completion of this reform is a policy priority for 2015. The objective of this new set of rules is to give citizens back control over of their personal data, and to simplify the regulatory environment for business. The data protection reform is a key enabler of the Digital Single Market which the Commission has prioritized. The reform will allow European citizens and businesses to fully benefit from the digital economy.

Source—European Commission

Everyone has the right to the protection of personal data

Under EU law, personal data can only be gathered legally under strict conditions, for a legitimate purpose. Furthermore, persons or organizations which collect and manage your personal information must protect it from misuse and must respect certain rights of the data owners which are guaranteed by EU law.

Source—European Commission

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So what does this mean for organizations?

In order to remain competitive organizations must protect the identities of their people and customers against fraud from ever-changing and developing online threats within the context of increasingly complex business models and the digitization of business. We believe that for protection measures to be successful they must improve the online experience by making it safer, more trustworthy and easier to use.

3 things to do now

1. Take a look at what you are doing to protect your company and client identity data

2. Asses and determine the risks and impact of this information being compromised

3. Reach out for expertise and help if required