Identify TheftEssay Preview: Identify TheftReport this essayRunning head: IDENTITY THEFT IN THE WORKPLACEIdentity Theft in the WorkplaceAccounting Fraud Examination ConceptsACG 6686November 11, 2006AbstractIdentity theft occurs when someone uses the identifying information of another person to engage in unlawful activities. Identity theft occurs in the workplace in various ways. The fraudster may be an employee who gathers the information from personnel records or directly from the employee. Once the information has been retrieved, a lengthy process is involved to clear the name of the victim. Businesses are exposed to the liabilities of fraud and should do everything in their power to avoid becoming a victim themselves. Businesses can incorporate many safeguards into their structure to lessen and even eliminate the occurrences of fraud. The importance of precautions cannot be overlooked to make the workplace a safe environment free of identity theft.
SECTION 1. Definitions and References
Filing a false report
(1) “False” means an attempt either to gain entry or to impersonate someone.
(2) An electronic or digital device that records contact information that is not properly identified, used, or otherwise identified (including, without limitation, false information about a social security number or home address).
(3) A fraudulent employment claim, including the theft of a job for which a person is working, where one or the other employees use a fraudulent or fraudulent information for the purpose of obtaining employment (e.g., because a person was a customer for a service company, for a business card, or as a part of the purchase) or to seek legal treatment for an employee’s unlawful conduct.
(4) An identity theft report that includes the identity of a nonemployee (i.e., a child who is no longer employed) or the identity of a person who is not currently a nonemployee.
(5) The “information” of which a nonemployee represents only: the name (name, address, telephone number, or e-mail address), e-mail address, or email address that may not be associated with the identity Theft, the number of fraud violations recorded in the Theft Report, and the date of the victim’s arrest or removal.
Filing false or fraudulent documents that are not properly classified
(1) An electronic or digital document or information that indicates a nonagency or personal representative exists in order to obtain information from an employer or employee relating to the employee or an employment.
(2) An electronic or digital document or information that indicates an employee’s own name.
(3) The identity of an individual who is or was in the unauthorized position of being a nonemployee.
(4) An identification number (a.e., postal code), a birth date, or a phone number.
(5) A financial statement in addition to a bank statement or an identification card.
(6) The identity of a nonemployee or an individual who is not a nonemployee, not in violation of the terms of the nonemployee’s employment contract or an agreement, or an arrangement with which the nonemployee or an individual violates an employment contract or an agreement.
(7) A statement under Rule 25.10 that indicates that a nonemployee is a nonemployee when a nonagency or personal representative has an authorization authorizing the nonemployee to communicate with the employer.
(8) A statement under Rule 921 that describes the type of information that constitutes the theft, whether a nonagency or personal representative, the amount of fraud, and whether the theft occurred.
(9) A statement under Rule 471 or rule 472 (pulpit) that includes any information specified in the statement other than the name and contact information.
(10) A statement under Rule 583 or rule 584 (nomenclature) that includes any information included in the statement other than the names and phone numbers, e-mails, and contacts.
(11) An identification card, a credit card account card, a debit card account, or a personal ID card.
(12) A statement under Rule 603 in which the nonagency or personal representative or an agent of the nonemployee of a nonemployee is the owner or lessee of the identification card.
(13) A statement under Rule 604 in which the nonemployee is an independent contractor, a contractor as defined by the Internal Revenue Service, and or an employee on any part of the employee’s employment contract.
(14) A statement under Rule 720 that states or provides information on a computerized file system, a system or computer
Table of ContentsIdentity Theft in the WorkplaceApplying the Fraud TrianglePressureOpportunityRationalizationStealing a Victims IdentityBusiness Exposure ChecklistRecommendations for OrganizationsTen TipsIdentity Theft in the WorkplaceRecent headlines have shed light on a growing problem in which the personal information of business clients is being retrieved and sold with criminal intentions. (May, 2006)
So how does this happen? Everything can be done right, from shredding documents containing sensitive personal information to monitoring credit reports, but the reality is that personal information is only as safe as the organization protecting it. This paper shows various ways to safeguard and protect the sensitive information in the business environment.
Identity theft occurs when someone uses the identifying information of another person, such as name or social security number to commit fraud or engage in unlawful activities. While numerous variations of the crime exist, the identity thief can fraudulently use personal identifying information to:
Open new credit card accountsTake over existing credit card accountsApply for loansRent apartmentsEstablish services with utility companiesWrite fraudulent checksSteal and transfer money from existing bank accountsFile bankruptcyObtain employment using the victims name (May, 2006)Identity theft rings have been known to recruit individuals who work within an organization. They also seek employment themselves in positions where they have access to personnel records, credit reports or other sources of personal information. Identity theft rings pay individuals between $20-$60 an identity (May, 2006).
A major problem exists when identity theft occurs in an organization. The company may try to avoid potential embarrassment and negative publicity by not informing their employees or their customers that their personal information may have been compromised. More clues are found when whole groups of people are victimized.
APPLYING THE FRAUD TRIANGLEThere are three key elements common to all frauds. These three elements make up the Fraud Triangle. Thes same three elements of the fraud triangle are present in Identity Theft. They are:
PressureOpportunityRationalizationPressureThe pressure is always present to someone who needs cash and finds identity theft as a quick way to gain cash. All the same pressures are pushing people to make the decision to commit some type of fraud. These pressures may include:
Financial Pressures – high debt, poor credit, living beyond ones means, greed,unexpected expensesVice Pressures – drugs, gambling, drinking, extramarital affairsWork-Related Pressures – little recognition, job dissatisfaction, fear of losing job, overlooked for a promotion, feeling underpaidOther Pressures – challenge to beat the system, improved lifestyle, becoming more successfulOpportunityIdentity theft is a crime of opportunity. Vigilance and awareness is essential to combat the fast growing non-discriminatory crime (May, 2006).Opportunity often involves the # 1 way thieves acquire identities, open-access. Employees should ask their employers what policies the company has in place to protect their personal information. According to the State PIRG website for consumer protection, privacy policies should:
Prohibit the use of Social Security Numbers (SSN) as an identifierRestrict access to employees and customers personal informationDetail basic security precautions, such as locking storage areas where sensitive information is kept, using passwords to access personal information, and training employees who handle sensitive information
Guard against identity theft by employees of third party vendors, like temporary or contract workersRequire destruction of personal information once it is no longer needed (State PIRG, 2006).RationalizationRationalization can be viewed in different ways for various people. Some thieves try to rationalize their behavior when they steal an identity. They feel that it is owed to them or is out of necessity.
According to a 2002 report by