National PEO Recommends Stronger Employee Data Policies

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Confidential employment records become number one identity theft risk.

One of the leading causes of identity theft, says a recent TransUnion report, is confidential employer record theft. This avenue surpasses that of mail, credit card and wallet theft. The Federal Trade Commission cites an astounding 90 percent of all business record thefts from employment and payroll data. These compromised records include legal names, birth dates, social security numbers, addresses and telephone numbers, banking and account numbers.

Using this data, criminals purchase cars, open credit card accounts and rent apartments. Once leaked, there’s no way to control its distribution to other criminals. Some victims spend years correcting the resulting damage, with others having no other option but to change their own name. Victims are now starting to file lawsuits against employers for such negligence. But there are steps employers can take to safeguard employee records and guard against litigation exposure.

National PEO, LLC, a professional Employer Organization specializing in HR outsourcing, workers’ compensation, payroll services, employee benefits and recruiting, recommends employers enforce stronger security measures to protect and dispose of sensitive data. These include locking and/or limiting access to employee information files, developing strict guidelines regarding information release via subpoena or other requests, enforcing a clean desk policy, masking social security numbers and shredding unnecessary files.

“Employers are becoming more and more concerned about their legal and ethical obligation to safeguard employee data,” states Hooman Nikzad, Managing Partner at National PEO, LLC. “We’ve seen an influx of inquiries resulting from employee pressures. Our clients need to prove that they have tight and proactive polices in place.”

While employees cannot protect their data, National PEO offers specialized Human Resource consulting and policy development, audit preparation, leadership and management training services to ensure businesses offer the strongest data protections. To learn more about National PEO, LLC or its services, visit http://www.nationalpeo.com.

About Company Name

National PEO helps businesses transfer the burden of their human resource function on a low-cost, contractual basis, eliminating the time and cost involved in non-productive, but essential, processes. Their services include Worker’s Compensation and safety management, payroll and Human Resource outsourcing including labor law compliance, employee handbooks, F.L.S.A. and Fair Pay Act compliance, employee relations, training and development, corrective action and conflict resolution, group and individual benefits management, 401K plans, strategic planning and management training seminars. The company also provides Spanish services and background checks. Their website can be found here http://www.nationalpeo.com/.

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Hooman Nikzad
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