ID Theft Protection Gains Momentum as a Key Employee Benefit
As open enrollment season progresses, employers are focusing on new benefits in response to the changing work landscape. Identity theft protection has emerged as a priority, especially with the rise of hybrid work models.
According to a Willis Towers Watson survey, a significant 78% of employers are expected to offer ID theft protection as an employee benefit by 2022.
This trend reflects the growing need for robust cybersecurity measures. Kristin Lewis, senior vice president of product and strategy, employee benefits, for identity protection provider Aura, highlights that unauthorized access to employee personal accounts is a major cause of employer data breaches. This often stems from employees using identical passwords for both personal and work accounts.
“Employers have an obligation to protect employees online, both to reduce the risk to the business and to ensure their wellbeing by protecting some of the things that matter to them the most: their identity, money, assets, online privacy and reputation,” Lewis explains.
Identity theft and financial fraud protection services actively monitor for the unauthorized use of sensitive employee information, including Social Security numbers, bank details, passwords, and medical records. When an employee’s information is compromised, these digital security solutions alert them to take immediate action, such as password changes, account freezes, or addressing fraudulent unemployment claims. These services also assist by automatically identifying and changing compromised passwords and offering support in contacting banks and creditors if an individual’s data is at risk.
Many plans incorporate insurance policies to cover losses and fees resulting from identity theft and fraud, Lewis notes. The increased prevalence of remote work has expanded opportunities for social engineering scams, particularly those that impersonate HR or company executives. “An effective scam could be a phishing text that appears to come from an executive communicating a new policy or company update regarding COVID-19. By clicking on the link and entering personal information employees could be opening themselves up to identity fraud,” Lewis cautions.
Employers now recognize the importance of safeguarding employees online, regardless of their location or the devices they use. According to Lewis, “accessing unsecured Wi-Fi, letting family members use devices that are also used for work purposes, downloading software or clicking on links from unknown senders can accidentally put employers and employees at risk of cybercrime.”
