McGregor

It is quite normal for a person to be asked to produce at least one form of identification in order to complete a financial transaction at a bank or cambio. For the most part, such a request is complied with, without a moment's contemplation of the legal obligation which rests on the shoulders of the other parties to the transaction to ensure the identity of the person with whom they are doing business.

By making these simple requests, banks and other financial institutions help to guard against what is commonly referred to as 'identity theft', which occurs when someone wrongfully acquires and uses another person's personal data for his own financial gain. Strictly speaking, crimes of this nature usually involve fraud, impersonation and forgery.

Increasing awareness

In recent years, there has been an increasing awareness of the potential for incidents of identity theft to occur. This is especially as the information age has created a dependency on transacting business via electronic means - banking and bill payment as well as online shopping are common examples. In carrying out these transactions, personal information, such as names, addresses, telephone and credit card numbers, is usually required.

While many of these transactions are reasonably safe, because the other transacting party recognises its duty to protect the consumer's privacy and guard against a breach of confidentiality, it is critical to accept the responsibility to protect yourself by:

Making online purchases only from known and reputable stores - stores that are likely to take protection of your electronic identity seriously

When entering personal information into a Internet-based form, check to see whether the browser transmission is encrypted - look for a lock icon on the browser border

When prompted to enter a PIN (personal identification number) in a public place, shield the dial-pad from casual view.

When asked to provide personal identity information, ask whether the request is optional, how the information will be protected, and whether it will be shared with another institution.

Look for and read the privacy statement provided by a company seeking personal information via the Internet.

Periodically confirm accounts and account balances.

(Extracted from IT Times)

There have been situations in which computer security has been breached and customers' personal information gets into the wrong hands, and it is not always clear what should happen in such cases. For example, is an institution required to advise its customers of the possibility that their personal data may have fallen into the wrong hands?

In some countries, legislation has been enacted to protect personal data, e.g. the Data Protection Act in England, or to mandate the disclosure of the fact that an institution's computer security has been breached. This speaks to recognition that identity theft has the potential to result in billions of dollars in losses. Perhaps it is time for us to consider whether our laws adequately protect consumers and business against these crimes.

Sherry-Ann McGregor is a partner and mediator with the firm Nunes, Scholefield, DeLeon & Co. Send feedback and questions to lawsofeve@yahoo.com.