Depending on what recent study is cited, identity theft victims, can spend anywhere from 60 to 300 hours cleaning up the mess an identity theft leaves. Victims suffer high anxiety, loss of focus, and decreased productivity, which can in turn affect the job function of the victim.
If employees personally falls victim to identity theft, the FTC reports it can take on average 600 hours to restore identity to a precondition state. When employees are busy trying to recover their identity, attempting to piece their good name and life back together, the cost to you in unrecoverable lost productivity translates into lost dollars for the company as well as employees. Even if employees continue to work, their stress level affects the quality of the job you are paying them to do for you.
Over the last 4 years the number of employers offering identity theft services as a benefit has increased ten- fold. This is becoming as much of a necessity as having healthcare insurance. The ones worth the typical monthly fees are those that have identity restoration as a key component to their plan offering. Organizations and agencies around the country suggest employers thoroughly research available plan options.
Workplace facts and statistics
Identity theft affects both the consumer and the business community in a multitude of ways. The impact of this crime clearly touches business at all levels and from many directions. Included below are some of the statistics that demonstrate areas of concern for members of the business community.
- Studies on the total cost of identity theft vary. One study said that identity theft cost U.S. businesses and consumers $56.6 billion in 2005.i
- According to one expert, the loss or theft of just one laptop can cost a company as much as $90,000 or more in fines, credit monitoring for victims, public relations damage control, and class action litigation.ii
- According to the U.S. Department of Justice Statistics, identity theft is now surpassing drug trafficking as the number one crime in the nation.iii A preliminary study done by Identity Theft Recover Center shows that the majority of identity theft criminals are repeat offenders. Other convictions include substance abuse, narcotic trafficking, violent crime, robbery, and immigration issues.
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In summary, there are 2 main reasons a company would purchase an identity theft benefit for their employees:
1) it is an act of goodwill with an inexpensive price tag when comparing it to other employer benefits and
2) to keep their employee from becoming distracted with the “clean up” if and when they become a victim.
See Related Article:
Employers offering ID theft protection as voluntary benefit
