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Two Ways Businesses Unwittingly Risk Identity Fraud

Sony’s recent hacking disaster troubles us. We’re all justifiably wary of having our identities compromised, just as about 70 million people on Sony’s networks were recently exposed to identity fraud. We’re concerned about the legal, financial and emotional ramifications of widespread scamming prevalent in our spamline culture. After all, losses from identity theft totaled $37 billion in 2010, according to the Washington Post. When it comes to business, most of us are primarily concerned about protecting the identities of our clients and customers. However, there is a simple way to ensure that they are secure: electronic file sharing. But many companies compromise their customers’ information without ever realizing it!

Consider this scenario: you’ve worked right down to the wire on a massive project for your most important customer. They need it by tomorrow, so you have two options:

  • Option 1: Attach it in an email (that is, if it fits within the 25MB file size limit). It will pass through your client’s IP almost immediately. There, Larry (the email “sniffer” who lives in his mother’s basement) intercepts your client’s personal information, steals it, and becomes wealthy enough to move from mom’s basement to Cancun, resulting in devastation for your client and a major lawsuit for you.
  • Option 2: Overnight the package via UPS. First, you must print and burn your project into physical existence and then sprint to the UPS store before it closes. There, you place it in the competent hands of the fifteen-year-old kid at the counter. Unfortunately, about 1% of UPS packages are lost or intercepted in transit on account of the many times they change hands. Your project ends up in the possession of Lena, (who likewise lives in her mom’s basement) who becomes wealthy enough to move both herself and her boyfriend Larry to Cancun, once again resulting in disaster for you and your litigious client.

Over 26 million personal records were exposed to theft in 2010, partially on account of corporate negligence. Naturally, no one wants their clients to be vulnerable at any point, so it stands to reason that we need an alternative mode of communication.

Electronic file sharing is not necessarily a new technology – just an underutilized one. This method allows you to upload your documents to a secure server and share access with clients, customers, contractors, etc. Those on the receiving end don’t have to purchase a file-sharing program themselves, because you can post a file-sharing access point to your website – customers or clients can simply login there. Effectively, the service permits businesses to avoid the costs of time and postage as well as the inherent danger of identity theft in transit.

Written By

Cameron is a social media whiz kid and news junkie with an abnormal interest in Electronic Document Management and client portal solutions.

5 Comments

5 Comments

  1. Sara

    May 17, 2011 at 11:18 pm

    Because of how many people do business online, and some online only, you would think that file-sharing would be a bigger option (or more used.) Although, when I think of file sharing, I think of Limewire and music downloading. I’m sure a lot of people think of it that way, so do you think that’s a big reason that it’s underutilized?

  2. Cameron Edwards

    May 18, 2011 at 6:52 pm

    I think you’re absolutely right, Sara. With so much buzz about virus-ridden, illegal P2P file sharing, I think that secure, legal file sharing has flown under the radar, to some degree. If you’re looking for a good example of the latter, SecureDrawer would be good to check out.

  3. crossley

    May 18, 2011 at 7:38 pm

    Great call drawing attention to these, especially the lesser known email one

  4. Admin

    May 18, 2011 at 8:19 pm

    Thanks for the great article Cameron 🙂

  5. Luqman

    May 23, 2011 at 2:01 pm

    Nice article , I think company should be more careful with identity fraud, they need to update security measurement for electronic file sharing from time to time.

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