Corporate Identity Theft

[MCWebsite.Staff]

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[Guest.Visitor]

Corporate Identity Theft

** This thread discusses the article: Corporate Identity Theft **
How could the example software company be liable for accounts they do not control created with a credit report for a bogus officer?

[T.Stockwell]

Corporate Identity Theft

** This thread discusses the article: Corporate Identity Theft **
In response to your question, the legal ramifications are not always as clear as you might believe. For instance, in personal identity theft cases, a person's legal liability when their credit cards have been stolen has been set by congress with a liability cap. Yet, clearing up credit rating damage after a someone has stolen a personal credit card can still be costly. Consider the ramifications if liability is not capped for a corporation. Damage to a corporate reputation can result in major legal fees. The current laws on the books do not specifically address the issue of liability in cases of corporate identity theft. This has left a lot of legal room for interpretation. After all, the creditor has no way of knowing that your organization's identity has been stolen and that charges have accumulated through acts of fraud. They were duped, but your corporation must make a good-faith effort to show them that they were duped. Until they accept that fact of life, they are holding you liable, and will go to great pains to ensure that you know this. From their perspective, your company is on the hook. Their recourses are to bring a lawsuit, report your organization to credit companies, and to black-ball the organization. Straightening out this mess takes time, and it takes investigation, and it takes money. Some companies are attempting to limit their liability through the use of insurance policies specifically designed to address corporate identity theft. Some insurance companies offer limited riders to their business insurance policies. This is a growing area of insurance coverage. However, this still doesn't address the issue of damage to a corporation's business reputation. Legal jurisdiction is also a problem with electronic identity theft, as well as law enforcement jurisdiction. Federal law enforcement agencies are having difficulties monitoring for electronic crimes perpetrated across the Internet -- often across national boundaries. The net impact of corporate identity theft can be devastating. That's the real issue which IT will be asked to help address: How do you limit a company's exposure!