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There are many identity crime and privacy related challenges facing both consumers and companies. We have become an identity obese society and as we continue to acquire and accumulate more personal information, we collectively lack the understanding of the risks as well as our obligations for protecting the personal information of our families, employees and clients. Consumers and businesses are disconnected from one another and lack the understanding of each other’s obligations thus creating challenges that affect both the consumers and the companies in terms of their credit worthiness, quality of life, credibility, and financial or emotional positions. Although some security and privacy laws address the rights of consumers and obligations of businesses, these laws are neither comprehensive, nor clear and centralized, however, they still need to be complied with. 

Major identity protection risks and challenges such as a) Security and privacy incidents, b) Breach mismanagement, c) Federal and State regulatory violations, d) Wasted financial and human resources, and e) Tarnished image may arise from any of the following:

• Insufficient or nonexistent executive management support for information protection

• Lack of effective information security management, policy enforcement and monitoring of internal controls and external incidents
• Unidentified or incomplete scope for protecting confidential data and related processes and systems
• Decentralized information protection functions
• Insufficient user and management awareness and education about security controls and requirements
• Inadequate information security budgets for automated tools, expertise, and adequate levels of staffing
• Inadequate knowledge and acceptance of security risks and controls by appropriate management
• Blind and unaudited transfer of information security controls to third parties
• Exclusion of information security management from key corporate strategic decisions and business changes such as outsourcing, process reengineering, acquisitions, and mergers
• Improperly configured and unsecured systems
• Excessive and/or inappropriate access
• Mismanagement of private information such as excessive collection and duplication, inappropriate retention or destruction of data
• Merely focusing just on technology when dealing with information security

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