Keeping employee information safe is the “hot button” of employee relocation today. The potential for identity theft is higher during a job change than with any other activity your human resource department will conduct.

That’s because there are so many pieces of data being transmitted to so many different vendors involved in the move, and with employees in a frenzy of distraction, normal discernment may get lost in the shuffle.

The Federal Trade Commission (FTC) claims nine million American’s have their identities stolen each year and that number is climbing.  According to a survey for the FTC, 23% of identity theft victims who knew the thief said it was someone who “worked at a company or financial institution that had access to the victims’” personal information. No doubt 21^st century relocation requires 21^st century security measures.

Employers are in the best position to negotiate with service providers to make sure the necessary security procedures in place, says Naomi Lefkovitz, an attorney with the FTC’s identity theft program in Washington, D.C.

Lefkovitz recommends you make sure vendors comply with the laws that apply to them and their industry. Where there are no legal requirements HR managers should determine what vendors need access to information and vet those vendors. Ask about their policies on how employees are trained on protection, background checks, how information is disposed of, and whether the database storing personal identifiable information is password-protected.

One of the biggest mistakes employers make is to ignore the issue. The laws are changing and getting stricter every year. HR managers need to realize the supply chain of information as it passes from outsource to outsource. A data-flow analysis, conducted by the HR department, should look at what information is collected, why it’s collected and what the risks for breach are. Of course, the more sensitive the data the greater the safeguards, but the days of faxing a copy of a SSN are gone.

Businesses may want to give employees a tip guide for spotting possible identity theft after their relocation. Lefkovitz says employees should be alert to strange items on a credit report, calls from a debt collection agency about a purchase they didn’t make, receiving a credit card that wasn’t applied for, or being given an unexpectedly high interest rate on a credit card. Red flags are important warning signs. Report them immediately to the HR Director or supervisor.

Remember, even though this is your new employee, the personal information is theirs and it’s your job to safeguard it.