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An overview of pending legislation and current FTC Data Protection Mandates
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Business Issues 2009:Data Breach
Victoria Wors
BBA and MS in Human Resources Management
Certified Birkman Method® Consultant
Human Resources Generalist Professional with numerous years in various industries and working with different levels of the organization as well as different cultures
Currently consultant to small and mid-sized businesses to improve productivity and efficiencies through better communications within teams and between specific individuals
Continuing Education Business Course Instructor for St. Louis Community College
Retained Human Resources Consultant to Premier Employee Services, (a St. Louis based PEO)
Agenda
Business Issues Overview Employment Legislation Benefits Legislation
Data Breaches Risk of Data Breaches Identity Theft / Fraud Regulatory
Cost to Business
What is Required
Business Issues
Employment Legislation
EFCA (Employee Free Choice Act)
The “New” National Labor Relations Board (NLRB)
SHRM Legislative Activity Report Week of September 17
EFCA LegislationSenator Arlen Specter said that the legislation
would contain Three planks unions want:
– faster turnaround for elections to certify unions
– Increased penalties for companies that violate organizing rules
– binding arbitration for contracts once a labor union is certified
Does not include the controversial “card check” provision
SHRM Legislative Activity Report Week of September 17
The “New” NLRB to reverse more than 50 Bush board decisions affecting:Equitable PayBack Pay IssuesDefinition of SupervisorDefinition of threats, intimidation and
coercion by employer“Salting”, refusal to hireUse of company e-mail for union
organizing purposes
And more…..
Business Issues
Benefits Legislation
Healthcare Reform Costs
Pension Plans 401(k) Advisors
SHRM Legislative Activity Report Week of September 28
Health Care Costs U.S. Employer Actions If Health Care Reform
Increases Employer Costs(% responding very likely or likely)
Reduce benefits 87%
Increase prices for customers 38%
Reduce employment 30%
Reduce salaries/direct compensation 27%
Accept reduced profits 11%
Other 6%
Source: Towers Perrin’s Health Care Reform Pulse Survey, September 2009.
SHRM Legislative Activity Report Week of September 28
Employee Benefits Security (EBSA)
The U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) will make enforcement a priority in fiscal year 2010 and will address 401(k) fee disclosure investment advice regulations issues regarding target-date funds
used as qualified deferred investment accounts (QDIA’s)
Business Issues
Data Breach…Loss of Information
External Access..”Hackers” Internal Access…Employee(s)Old Documents…Inappropriately
Stored Improper DisposalLost Laptops and PDA’sMemory Chips…Copier/Fax/Printers
Risk of Data Breach
Risk Perspectives of Data Breach / Identity Theft
Event Chance this Year Car stolen 1 in 100 House Catch Fire 1 in 200 Die from heart disease 1 in 280 Die in car wreck 1 in 6,000 Identity Theft 1 in 8 or 1 in 6 depending on
where you live Data Breach will depend on 3 in 10 or 7 in 10
depending in your industry and location
Identity Theft / Fraud – Data Loss
Person Corporation Clients / Customers Vendors
Types of Identity Theft
MedicalCharacter CriminalPassport / Driver’s
LicenseFinance
Social Security
Fastest Growing Segment = Healthcare
Committed by Three Types of People
Individuals that are not connected to larger groups
Small Organized Groups Domestic Organized Criminal Group Foreign Organized Criminal Groups
Regulatory
*FACTA & FACTA “Red Flag Rules” – up to $2500 in fines per occurrence
*HIPPA – up to $250,000 in fines *Gramm Leach Bliley - up to $1million
in fines plus change of management and jail
State Statutes
*The Federal Trade Commission is the primary regulatory enforcement agency
Business Issues
Costs
RegulatoryFines, Fees & Penalties
MitigationCustomer and / or Employee NotificationsCredit
Liability
Costs: Workplace Facts and Statistics
Identity Theft Resource Center reports cost to Business and Consumers in 2005 = $56.6B
Forester Research reported Data Breach costs in a range from $90 to $305 per customer record
A reported 247,491,255 personal records have been compromised by stolen or lost data between 2005 and 2008
What Is Required
Appointment of a Chief Information Security Officer
A Written Non-Public Information Policy
Training of Employees Notification of Vendors of their
requirement to Meet the Standards Mitigation Plan
QUESTIONS?
VICTORIA WORSFor additional information contact: