Security Breaches Tied to Job Losses

America faces currently its most significant economic downturn since The Great Depression nearly a century ago.  The Federal Reserve is using methods, conventional and unconventional, to flood the market with money in the hopes that people and companies alike will spend, and therefore revive, our lethargic economy.  Just months ago our legislative branch worked in concert with the executive to pass a stimulus package that resulted in Americans receiving several hundred to over one thousand dollars.  Companies such as GM and Citibank have recently received substantial infusions of cash from the federal government so as to prevent complete collapses and bankruptcies.  Lastly, even FDIC limits have been increased from $100,000 to $250,000 (temporarily) to discourage people from withdrawing money from their local banks.
 
And yet, despite these steps and more, our economy continues to contract.  Hundreds of thousands of jobs have been lost in recent months alone.  Because fewer people are spending, companies are forced to produce fewer goods.  The fewer goods that are produced, the fewer workers are needed.  Companies are not simply cutting out holiday parties this year, they are slashing jobs in the hopes of surviving.  Even if you feel secure about the status of your own employment this season, the reality that many others are losing their jobs has the potential to affect you greatly.  Below are some of the ways how.

First, many of the people being laid off are IT professionals.  Companies with millions of customers around the globe are having to cut substantially their IT budgets.  That means fewer professionals are able to protect against cyber attacks and guard information systems that were already vulnerable to the machinations of identity thieves.  Fewer vigilant eyes generally means greater opportunities for security breaches.

Second, people who lose their jobs may become disgruntled.  Simply because they no longer work for a given company does not mean they are no longer equipped with the necessary skills and knowledge to remain deeply connected to the company’s online workings.  People who used to have access to sensitive information legitimately may begin using that access illegitimately upon being fired.  Some may feel justified in causing massive destruction to the company they perceive abandoned them in an hour of great economic need.  While illegal, of course, wreaking havoc with a company’s information system is not an uncommon response to being laid off.   Once sensitive information has been tampered with, consumers around the country can find themselves exposed.
 
Third, and this is far more common, people have far less disposable income to spend on preventative measures with regard to identity theft.  Services such as ID Secure, which provides great value as it detects identity fraud and prevents unauthorized accounts from being opened, are often demoted on the average consumer’s list of necessities.  While refraining from retaining such services can be risky and harmful in the long term, many people feel they need to save every penny in order to meet short term obligations such as rent/mortgage, tuition and other expenses.  (For more information on how affordable ID secure is, please visit www.identitytheft.com/idsecure.)

Lastly, there is a historical link between depressed economic conditions and elevated crime rates.  "Every recession since the late ’50s has been associated with an increase in crime and, in particular, property crime and robbery," said Richard Rosenfeld, a sociologist at the University of Missouri-St. Louis.  The more strained people are financially, the more likely they are to engage in crime to cover monthly expenses.  But the crimes are not limited to property crime or robbery.  Many times, particularly given how accessible modern technology is, the crimes involve stealing another’s identity online through phishing scams and more.
  
While most immediately impactful, of course, an individual’s job loss is not the only way he/she may be affected by our current economic slump.  Sensitive information such as credit history, account numbers and more may be at risk due to shrinking IT budgets, disgruntled former employees, less disposable income to spend on preventing identity theft and increased crime rates.  Being especially vigilant of one’s identity is important during these turbulent economic times.