Kay Robinson: BBB Report

The Identity Theft Resource Center lists more than 79 million records reported compromised in the United States in 2007 - almost a fourfold increase from the nearly 20 million records reported compromised in 2006. The cause of the data breaches ranged in sophistication from the expert work of computer hackers to the negligent handling of sensitive information on the part of company employees.

So far 2008 looks a lot like 2007. There have already been major data breaches at some very recognizable companies such as MTV and T. Rowe Price.

While breaches at major corporations make the news, many small businesses also find themselves victims of security breaches. Sensitive financial information on a business and its customers can be compromised by poor handling of computer or paper data or it can be stolen by thieves and hackers, and small business owners must be prepared to respond quickly to lessen the damage done.

The BBB offers steps and guidance for small business owners in the event they experience a security breach:

If a business chooses to inform customers about a security breach, it should describe the nature of the incident, inform them what has been done to address the problem and advise them on what the company will do in the future to further reduce the chance of future security breaches.

The BBB also recommends alerting the three national consumer reporting agencies: Equifax (www.equifax.com), TransUnion (www.transunion.com) and Experian (www.experian.com).

Businesses should also alert the bank or company hired to process payment cards. It's important that the compromised accounts are watched or closed to prevent fraud from occurring on them. Unfortunately, businesses could be liable for any resulting fraud, so quick notification to payment card companies can help.

For more BBB advice on ID theft prevention and for trustworthy advice on many other issues affecting small businesses, go to www.bbb.org.

Kay Robinson
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