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.
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