Matthias Pfau is cofounder of Tuta, a secure email service and an innovation leader in encrypted communication and collaboration.
In today's digitalized landscape, identity theft isn't just a personal concern—it’s a business risk.
For businesses, protecting employees from identity theft not only helps the individuals but also strengthens the overall security of the organization. When employees feel secure, they are more productive and more loyal.
Let’s explore how businesses can proactively protect their employees from identity theft.
Why Employee Identity Protection Matters
Particularly in the U.S., the Social Security number (SSN)—a unique identifier issued by the U.S. government—is a prime target for malicious attackers. It is used for a variety of purposes, such as tracking earnings, determining eligibility for social benefits and for tax purposes.
By obtaining SSNs, thieves can open bank accounts, apply for credit cards, file tax returns and even gain access to medical services in other’s names. That’s why it is so crucial to protect one’s Social Security Number—both individually, and as an employer handling sensitive employee data.
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Employers need to have the SSNs of the entire workforce for handling salaries and Social Security benefits. That’s one of the reasons that businesses are becoming a prime target for hackers and why they must keep their systems secure.
Employee identity theft can lead to severe consequences for both the individual and the organization. Employees affected by identity theft may spend countless hours resolving issues, which hinders them from focusing on their daily tasks at work, leading to lost work time and increased stress for the individuals affected. Moreover, businesses must make sure that no employee data gets compromised and prevent security breaches to their systems—as these might have even wider implications for the security of the business as a whole.
Implementing Strong Cybersecurity Measures
A robust cybersecurity framework is the first line of defense against identity theft. Here are three key measures that businesses should implement:
1. Use advanced encryption. Ensure that all sensitive employee data—whether in transit or at rest—is encrypted using advanced encryption standards. The best method is end-to-end encryption, possibly even with quantum-safe encryption algorithms. This makes it very difficult, if not impossible, for cybercriminals to access and misuse the data.
2. Implement stringent access control measures. Limit access to sensitive employee information to only those who absolutely need it. Use two-factor authentication (2FA) or, even better, multi-factor authentication (MFA), to add an extra layer of security for accessing sensitive systems and data.
3. Conduct regular security audits. These audits can identify and rectify vulnerabilities within your systems. They should cover network security, data storage practices and access controls.
Educating Employees On Identity Theft Prevention
Once businesses have established these organizational security measures, they need to pay special attention to their employees, particularly the ones who have access to the data like team leaders or HR managers.
If the organizational security is tight, the weakest link are people. That’s why educating your employees on best cybersecurity practices is crucial. It helps you decrease the risk of breaches of your company’s data in general and of SSNs in particular.
To educate your workforce, conduct regular training sessions on the latest identity theft tactics and cybersecurity best practices. Employees should be aware of common phishing scams, social engineering tactics and how to handle sensitive information securely.
You can even run phishing simulations to test employees' awareness and response to phishing attempts. This practical approach helps employees recognize and respond appropriately to real threats.
Enhanced Data-Protection Policies
Lastly, take a look at data protection policies.
Comprehensive data privacy policies are already mandatory in many countries—and for good reason. Well-defined data protection policies outline how employee data is collected, stored and used. By making sure that these policies comply with relevant regulations such as the European GDPR or the American CCPA, you ensure that the data is handled in line with regulatory requirements.
Another best practice is using data minimization: The data you do not have is data that can not be breached, lost or abused. By collecting only the information necessary for business operations, you can lower the risk of exposure to sensitive employee data.
Likewise, it’s important to implement secure disposal procedures for documents containing sensitive employee information. Shredding physical documents and securely deleting electronic files can prevent unauthorized access.
Addressing Social Security Number Safety
The SSN is a critical piece of information that requires special attention. A company handles lots of SSNs and must make sure that these are well-protected. Here's how:
1. Limit SSN usage. Limit the use of SSNs within your organization. Use alternative identifiers wherever possible and only request SSNs of employees when absolutely necessary.
2. Secure SSN storage. Store SSNs securely, using encryption and restricted access, including multi-factor authentication.
3. Monitor and audit access to SSNs. Regularly monitor and audit access to systems containing SSNs. Ensure that only authorized personnel have access and that their activities are logged and reviewed.
One Step Ahead
Protecting employees from identity theft is not just a moral obligation but a strategic business decision.
By implementing strong cybersecurity measures, educating employees, enhancing data protection policies and addressing SSN safety, businesses can create a secure environment that protects their most valuable asset: their employees.
In doing so, businesses not only prevent identity theft and harden their systems against data loss and breaches but also build trust and loyalty among their workforce.
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