GLOSSARY OF TERMS
FACTA: Fair and Accurate Credit Transactions Act (FACTA)
Passed by Congress December 2003. Requires anyone who has or maintains consumer information for a "business purpose" must use "reasonable measures" to ensure that no one gains unauthorized access to it.
The new employee identity theft regulation was effective June 1, 2005. Failure to take "reasonable measures" or comply can result in:
- Potentially huge actual damages
- Statutory damages of up to $1,000 per employee
- Civil fines of up to $2,500 per employee
- Class action lawsuits
GRAMM, LEACH, BLILEY SAFEGUARD RULE:
Applies to any organization that maintains personal financial information or NPI regarding its clients or customers. Failure to take "reasonable measures" or comply can result in:
- Fines up to $1Million per occurrence
- Up to 10 years jail time for Executives
- Removal of management
- Executives within an organization can be held accountable for non-compliance both civilly and criminally.
HIPAA: Health Insurance Portability and Accountability Act
Effective April 21, 2006. Applies to any organization or individuals who retains or collects health information. Failure to take "reasonable measures" or comply can result in:
- Fines up to $250,000 per occurrence
- Up to 10 years jail time for Executives
NPI: Non-public information
Private information such as name, address, identification numbers like social security and drivers license, personal financial information, etc.