Pretexting - white lies that can damage your company

In the wake of recent news at HP, pretexting has become the hot topic in the business world, and its sudden rise to fame broaches numerous questions including: What exactly is pretexting? How are companies liable for it? What are companies doing that is considered pretexting and how can they protect themselves from becoming the next HP?

The US Federal Trade Commission Act defines pretexting as "getting your personal information under false pretenses." This definition may seem broad, but does more or less specify the parameters of pretexting as being anything done to mislead an entity, in any way, for the purpose of gaining information.

For example, think of a time when you pushed someone for their birth date or address; a little white lie to attain information that otherwise you have no right to. Now imagine this situation on the corporate level. That’s pretexting.

Pretexting is a more common practice than people realise and, thanks to recent news, companies are just now realising their liability. One area where it is truly becoming a major concern is with outsourcing. Consider the example of company A, let’s call them American Conglomerate Health Group (ACHG), a networked hospital system.

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