UBP blog

07/15/2009

Benefits identity theft skyrockets. Are you safeguarding personal employee data in your HR department?

Filed under: Massachusetts encryption law — ubpblogger @ 9:26 am
Tags: , ,

The Problem:

In 2008, a record 79 million identity thefts occurred in the United States. According to a report by the Alexander Hamilton Institute, an estimated 50-70 percent of these thefts happened in the workplace. Employee benefits documents—and employee files in general—contain all of the information necessary for an information thief to steal someone’s identity.

Benefits identity theft can come both from within the company (i.e. a temporary employee working in HR who has access to employee information files a reimbursement account claim as someone else) or from outside of the company (i.e. an employee’s online statement gets hacked and the hacker wipes out all of his or her retirement savings with the click of a mouse).

What the experts suggest:

Benefits identity theft is a problem that employers often overlook until it is too late. Employers should therefore create and put into place a policy for the safe handling of sensitive data, from its collection to its disposal. All paper personnel files should be secured with combination locks. If your company maintains electronic personnel files, work with IT to ensure that all such records are encrypted and password protected.

To protect your employees from reimbursement account theft, you should keep signatures of all employees on file so that you can be prepared to audit a suspicious looking reimbursement check. You should run reports of your company’s newly-terminated employees so that you can audit cancelled reimbursement checks in their names. For greater protection, only send reimbursements through direct deposit to an account that you have verified belongs to the correct employee.

Enhanced, double-encrypted HRIS solution FOR FREE:

The HR in a Box™, Universal Benefit Plans’ A to Z HR and benefits management solution, is a dual-encrypted time- and cost-saving tool for small-to-mid size enterprises. With The HR in a Box™, not only will your company eliminate the time-consuming and costly practice of manual benefit administration, you will also be able to rest assured that all of your employee benefits data is secure. The HR in a Box™ also generates reports of employees terminated as far back as you want them, making the process of auditing cancelled reimbursement checks an easier one.

To learn more about how having The HR in a Box™ can help your company or to schedule a free product demo, visit http://www.universalbenefitplans.com.


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