Identity Theft and the CPA

Source: Florida CPA Today

Though this article specifically discusses not-for-profits, it has double value for CPAs — they can use the recommended procedures to protect themselves and their clients.

Not-for-profit entities may be more vulnerable to identity theft than for-profit companies. Their managements tend to believe employees are more honest. And they are typically paid less because they work in the not-for-profit world.

Identity theft can occur from:

• Credit card receipts and other documents (unless properly shredded) in the trash.
• Unhappy employees, temps, and cleaning crews.
• Phishing — acquisition of private information through spurious e-mails.

Here are some precautions you can take:

• Conduct employee screening.
• Train employees to recognize and report IT security problems.
• Restrict access to sensitive files.
• Limit access to network servers and back-up files. Utilize anti-virus and anti-spyware programs.
• Protect BlackBerries, flash drives, etc., both in and out of the office.
• Shred all paper documents with a cross-cut shredder.
• Use a wipe utility program to remove sensitive computer files.
• Recognize that deleted files are not removed from the computer.

For the complete article, click here and read Information Under Siege: Protecting Your Not-For-Profit From Identity Theft on page 22 of the January/February 2008 issue.

From Florida CPA Today, Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314, www.ficpa.org.

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