"Account" means a continuing relationship established by a person with your company to obtain a product or services. Note that the requirements of the federal rules apply not only to existing accounts but also to new account openings, when a relationship has not yet been established.

This category of Accounts includes any accounts for which the risk of identity theft is reasonably foreseeable because of how they are opened and accessed (i.e., the accounts can be accessed without face-to-face contact, such as through the Internet or by telephone).

As an owner, you are responsible to review all your accounts to determine whether any of those accounts are "Covered Accounts".

"Covered Account" pertains to accounts which involve prepayment or contemporaneous payment as well as payment in arrears and means (i) an account that you offer or maintain, primarily for purposes, that involves or is designed to permit multiple payments or transactions and (ii) any other account that you offer or maintain for which there is a reasonably foreseeable risk to customers or to the safety and soundness of your company from identify theft, including financial, operational, compliance, reputation, or litigation risks.

A "Covered Account", must develop an Identity Theft Program designed to detect, prevent, and mitigate identity theft in connection with a Covered Account.

On June 1, 2005, a new provision of the Fair and Accurate Credit Transactions Act (FACTA) took effect. It states that a business whose action, or inaction, results in the loss of employee or customer information can be fined by federal and state government, and sued in civil court.

Here is a link to a Video Tutorial: Info Security and a quick tip that will help you better understand what you need to do for protecting information:

Take Stock: Be aware and know what you have as sensitive information
Scale Down: Get rid of what you do not need, but do it correctly
Lock It: Be sure to secure all your sensitive information
Pitch It: Know how to properly dispose of sensitive information
Plan Ahead: Things are constantly changing, be sure you are current with protecting your sensitive information