Preventing Employee Theft of Customer Information: How Does It Happen? ?

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A key part of business operations is keeping customers happy. Keeping their private information safe is also a big part of the job. Most of the time, companies focus on data theft by reducing the risk to the business itself. However, employee theft is a concern. It impacts both your business operations and your customers.

Your business insurance will often help to reduce your liabilities from theft. However, understanding the risk and preventing it are also important.

How Employees Steal Customer Data

Customer data includes personal identification information. It may include a person's photo ID or driver's license number, social security number or birth date. It could include his or her credit card information. There are some employees who come along that may use underhanded means to snag customer data.

For example, small, handheld devices can gather information from a credit card with a single swipe. An employee may forget to give a credit card back. They may ask the customer for ID and then gather that information for private use. And, in some cases, employees look through company files to gather this type of personal data. It can happen in any type of business.

What Are Your Responsibilities?

In every situation, a business needs to take steps to minimize risk. In this case, it means having the proper resources in place. Here are some tips for preventing employee theft of customer data.

Keep all payment processing tools and systems in the open. Don't place them behind doors or in enclosed areas.
Monitor the actions of employees when gathering information. Use cameras, for example, to monitor drawer transactions. This gives you clear insight into what is happening.

Ensure you have proper business insurance. Employee dishonesty coverage is an additional type of business liability insurance to consider. You might also need cyber theft insurance for additional protection.
Use software to track access to digital files. If someone wishes to access client information, he or she must use a passcode. You should be able to track that access. You should always know who has access to customer information.
Consider background screenings, if allowable, to monitor for any signs of previous theft.

Taking these steps can help ensure your business remains safe from negligence claims. Today, high tech solutions are available to help minimize these risks to consumers. And, credit card companies and identity theft services are quite vigilant. They can help customers track down thieves sooner. You do not want this to come back to hurt your business reputation. Be proactive instead.

For more information on employee dishonesty coverage, contact one of our agents today.

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