Bail Bondsmen Need To Protect Client Information

Recently the Bail Bonds Insider reported a scam which unknowingly involved multiple bail bonds agencies in Washington State. Fraudsters attempted to defraud bail bonds clients after gaining their personal information under false pretenses from their respective bondsmen.

According to law enforcement officials, this specific con job, which preys upon weaknesses in bail bonds information security practices, is widespread across the United States. Knowing there is such an ongoing issue on a national scale, one must necessarily call into question the privacy and information security practices currently employed within the bail bonds industry.

The recent cases in Washington, started with fraudsters calling bail bondsmen, while posing as local law enforcement. The bondsmen were told they needed to provide the names and contact information of clients for which they had recently posted bonds. Once the personally identifying information was disclosed, the con men then contacted the clients and demanded more money under the guise it was related to their bail bonds.

Most other industries that have a nexus to sensitive client information employ strict best practices, and in some instances are compelled by statutory requirements, to safeguard the security of that data. The notion that one, without proper documentation, could simply call a doctor's office, credit card company, insurance carrier or any other entity to gain client information is unheard of. In the health care industry for example, signed HIPAA (Health Insurance Portability and Accountability Act) forms are required before any patient information is disclosed. These forms have very specific language which delineates what type of patient information may be disclosed and to whom that information may be provided.

In the insurance industry, those attempting to access client information need to provide a signed authorization letter from the policy owner. In some cases, carriers require their own proprietary forms be used to collect a policy owner's authorization to release information. Why should the bail bonds industry be any less diligent?

The dynamic within the bail bonds world is fluid. Bondsmen frequently operate in an environment necessitating quick action while laden with ambiguity. However, this unique business environment shouldn't be thought of as a reason for bail bond professionals to become lax and ignore prudent information safeguards. To the contrary. Since the industry has so many opportunities in which information security can be compromised, it needs to have a heightened sense of vigilance.

Due to the unique nature of the bail bonds industry and the public access to legal records, some client information does of course find its way into the open. While the specific information security procedures utilized in other industries may not be feasible for the bail bonds world. The thoroughness in which information is safeguarded elsewhere certainly can be adopted. For example, verifying the identity of persons requesting client information should be a standard, unwavering practice. That in of itself would stop the scam in Washington.

The ramifications of not protecting client information, where appropriate, should not be ignored. Bail bondsmen would be prudent to examine the potential liability they assume if client information is disclosed improperly or to unauthorized parties. If a bondsman provides information that is then used to defraud a client, does the bondsman have any liability stemming from their information security practices? In our litigious society, one should assume that the burden of defending business practices may very well take place as a defendant in civil action.

Not only does a sound client information security policy benefit a bondsman by managing their liability, but it should also be viewed as the right thing to do for clients. Bail bondsmen are not typically viewed in the same manner of fiduciary responsibility as a doctor, lawyer or financial services professional. However, they do have an ethical responsibility to not be careless with the information of those that have come to them for help in difficult times.