Ask for Usernames, Don’t Ask for Passwords

Flag-map_of_Montana.svg

From a compliance perspective it is good to monitor what your employees are doing in the various social media sites. If you operate in a heavily regulated industry it may not only be a good idea, but be necessary.

Don’t cross the line and ask for the passwords to those accounts. Learn from the City of Bozeman Montana.

Back in June, the City started asking job applicants for the list of social networking sites that they used, their usernames and their passwords. The city of 30,000 people became the subject of online outrage.

I think it is okay to ask employees and job applicant’s for a list of the sites they use. Most HR people include an internet search as part of their background check for job applicants. Focusing on some of the social networking sites is just an evolution in the process. You should investigate your potential employees to see if they are using the proper discretion. After all, if they list you as an employer, what they post will reflect back on your company.

But I think it was improper to require submission of the password. It violates the terms of service for some of these site.  Facebook explicitly prohibits the sharing of a password in its Statement of Rights and Responsibilities. If the City needed to see what the person was posting, then they could require them to be a Facebook friend or the equivalent to gain access to the person’s postings.

One caution in reviewing an applicant’s online profiles is the potential for job discrimination. I think it is better to do this review later in the hiring process, after an interview. The sites can expose information that you are not allowed to use in the hiring process, such as marital status, race and ethnicity. If you find something online that you takes the candidate out of consideration, document it in the file. Print the screen, highlight the offensive information and make it part of the applicant’s file.

If you do ask for the social media usernames, make sure you actually do monitor what is being posted by your employees. Use an RSS feedreader or equivalent to receive updates and store the information.

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Image by Darwinek, made available under a GNU Free Documentation License: Flag Map of Montana.

Corporate Compliance Scam Continues. . .

. . But some of the perpetrators may have been caught.

California

California businesses have recent reports.  The scam seems to have been operating in California for years.

Colorado

There are reports of the scam in Colorado: State Corporate Compliance fraud. The Secretary of State is also getting complaints about the Colorado Compliance Recorder: Updated Notice Regarding “Annual Minutes” Solicitations

Indiana

Indiana issued a warning that several businesses have reported receiving a deceptive letter that would appear to come from an official government source. The letter solicits an annual fee of $125 or $150 and claims it will be used for record keeping and processing of a company’s annual minutes. It gives the appearance of coming from a legitimate government agency and cites fictitious state law. Scam Alert for Businesses in Indiana. But the Secretary of State has filed a complaint to try to stop the scam.

Montana

Montana has issued a warning, although the Secretary of State has not received any complaints and is not aware of any Montana businesses being affected: Business Scam Alert (.pdf) (I am not sure that I agree that the scam is “potentially dangerous.”)

New York

In the Empire State, it looks like the scam has spread to condominiums and cooperatives: Scam or Useful Service? The Corporate Records Compliance Office Speaks

Texas

It looks like the scam has been operating in Texas for a few years, masquerading as a state agency.  They may have caught the person behind some of it: Californian Charged With Unlawfully Profiting From Fake State Document Scheme.

Others

Previously, I noted that the scam was found in Florida, Georgia, IllinoisMassachusetts, and Ohio.

Catching the Bad Guys

Its not clear if the scams in each state are perpetrated by the same group. The Indiana Secretary of State filed a complaint against Aaron V. Williams of Las Vegas, Lisa Diane Brown of California and several companies affiliated with them. (Of course these people have merely charged and are not necessarily guilty.)

UPDATE:

The Texas Attorney General filed suit against other parties, but the suit was dismissed.

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