Excerpted from Shred Nations ID Theft Alert
If You Don’t Need It Don’t Keep It
There’s a school of thought in information technology that encourages businesses to save customers’ data — which may include names, addresses and credit-card numbers — because it may come in handy for market research. But this practice is at odds with credit-card issuers’ attempts to persuade businesses to eliminate data they don’t need — or better yet, not to collect data in the first place.
For the past several years, the payment-card industry has been encouraging businesses to improve data security. The reason is clear: Cyber criminals steal credit-card information stored by these businesses and use the information to make fraudulent purchases. Credit-card issuers cover the cost of fraud, which has more than tripled over the past decade to $5.6 billion world-wide in 2007, according to the Nilson Report, an organization that follows the payment-card industry.
The FTC Issues Requirements for Municipalities to Adopt ID Theft Programs
Sunday, September 14, 2008 — The Federal Trade Commission (FTC) has issued new requirements for municipalities on the adoption of identity theft programs.
The release stated that all municipalities with utility accounts must participate. According to the Tennessee Valley Public Power Association (TVPPA), utilities rank No. 3 as a place for identity thieves to gain information. Credit cards companies and cell phone companies are the top two.
The objective of the program is to identify, detect and respond to red flags, meaning a pattern or practice of specific activity that indicates the possible existence of identity theft.