Per Mar Security Services acquires Feel Safe Security Systems, Inc. [more...]

The Homeland Security Advisory System [more...]

New Amendment to FCRA Hailed by Employers [more...]

New Year's Security Resolutions [more...]

How Bad Was Arthur Anderson? [more...]

Richard Scrushy first to be Prosecuted under Sarbanes-Oxley [more...]

Don't Call Me, I'll Call You [more...]

U.S. Economy Sizzles [more...]

Cool Tools [more...]

Bush Signs Spam Bill [more...]

Per Mar Security Services acquired the accounts of Feel Safe Security Systems, Inc. in Des Moines, Iowa. Feel Safe served the security needs of a wide variety of alarm customers in the Des Moines area for over six years. Feel Safe's operation merged with Per Mar's branch office in Des Moines, effective December 1, 2003, where Pat Rabbitt is serving as the Acting General Manager. The addition of this business to Per Mar's long-established operations in the Des Moines area increases our company's presence and will enable Per Mar to provide even better service in western Iowa.

By presidential Executive Order the Homeland Security Advisory System became a reality in 2001. This widely publicized, yet poorly understood system provides a comprehensive and effective means to disseminate information regarding the risk of terrorist acts to Federal, State, and Local authorities and to the American people. The system provides warnings in the form of a set of graduated Threat Conditions that increase as the risk of the threat increases. At each Threat Condition, Federal departments and agencies implement a corresponding set of Protective Measures to further reduce vulnerability or increase response capability during a period of heightened alert.

The use of the Homeland Security Advisory System is binding on the executive branch and suggested, although voluntary, to other levels of government and the private sector. There are five Threat Conditions, each identified by a description and corresponding color. From lowest to highest, the levels and colors are:

Low = Green;
Guarded = Blue;
Elevated = Yellow;
High = Orange;
Severe = Red.


The higher the Threat Condition, the greater the risks of a terrorist attack. Risk includes both the probability of an attack occurring and its potential gravity. Threat Conditions are assigned by the Attorney General in consultation with the Assistant to the President for Homeland Security. Except in exigent circumstances, the Attorney General is required to seek the input of the Department of Homeland Security and other parties, as appropriate, on the Threat Condition to be assigned. Threat Conditions may be assigned for the entire Nation, or they may be set for a particular geographic area or industrial sector. Assigned Threat Conditions are reviewed at regular intervals to determine whether adjustments are warranted.

The assignment of a Threat Condition prompts the implementation of an appropriate set of Protective Measures. Protective Measures are the specific steps an organization or agency takes to reduce its vulnerability or increase its ability to respond during a period of heightened alert. The authority to craft and implement Protective Measures rests with the Federal departments and executive agencies under jurisdiction of the System. For obvious reasons, the steps and response plans of the covered organizations and entities is not public information. Says one terrorist expert, "The bad guys haven't a clue as to our intended response and that is exactly the way we want to keep it."

Employers no longer need the approval of employees to conduct workplace investigations. On December 4, 2003, President Bush signed into law a bill reauthorizing the Fair Credit Reporting Act. In addition to strengthening consumer rights, the bill removes the requirement that employers notify and obtain employee approval before undertaking a workplace investigation.

The barriers to workplace investigations arose from a published 1999 Federal Trade Commission opinion that prohibited employers' use of outside professional investigators in cases of suspected employee misconduct unless the same requirements used for the creation of consumer credit reports were satisfied. The unintended consequences of this interpretation meant that the worker suspected of misconduct had to be notified before any investigation and give written authorization to the employer before it proceeded.

Pete Sessions (R-TX), the sponsor of the new The Fair and Accurate Credit Transactions Act of 2003, told his constituency, "I believe that it is in the best interest of both responsible employers and upstanding employees that professional investigations not be compromised by the FTC's misguided interpretation of the FCRA. The enactment of this legislation will play an important role in ensuring the safety and integrity of the workplace." Others agree, "Because of the changes, employers can now hire outside experts to investigate incidents of workplace misconduct without fear of liability under FCRA," says Josh Ulman, Director, Labor Law Policy for the U.S. Chamber of Commerce. "Clearly, this will facilitate employers in their ongoing efforts to combat workplace violence, harassment, and other threats to workplace safety."

Instrumental in achieving this victory for employers and investigators was the National Council of Investigation and Security Services. For seven years, NCISS (which represents the nation's leading investigation and security companies) fought to amend the FCRA and correct the unintended consequences it had on workplace investigations. Since the amendment itself does not contain an effective date, the FTC has sixty days or until February 3, 2004, to promulgate regulations.

Tip: Employers are reminded that the newly amended FCRA does not alter the rules regarding employment background investigations. The obligations of the employer and those who compile reports for them have not changed. Employers must still notify the individual and obtain their permission before initiating a background investigation, regardless of purpose.

It's that time of year again. Now is a perfect time to review your internal security procedures and protocols. Here are a few of our recommendations:

• Change all of your computer passwords. Passwords should contain a combination of at least eight letters and numbers and should be changed quarterly.
• Change the combination to all safes, combination locking mechanisms and doors.
• Conduct a key inventory. Ensure those who have been issued keys still possess them. If any keys cannot be accounted for or have been issued to individuals that are no longer employees, bite the bullet and re-key.
• Reissue all access cards. Disable those that are missing or have been reported lost.
• Test your fire and alarm system.
• Replace batteries in all smoke alarms.
• Inspect all fire extinguishers and internal fire suppression systems. Service those that need servicing.
• Inspect all medical aid kits and stations. Restock as necessary.
• Verify the names and telephone numbers on your emergency call lists.
• Test cameras, monitors and recorders. Repair or replace those components not functioning properly.
• Reaffirm your organization's ethics, confidentiality, sexual harassment, substance abuse and search policies. Ask employees to provide a written acknowledgement.

In June 2002, Arthur Anderson, the world's fifth largest accounting firm, was convicted of destroying documents regarding its dealings with energy trader, Enron. The conviction, in turn, destroyed Anderson. As a Texas judge, Melinda Harmon, remarked in a related case, Anderson had shown a "callous, reckless disregard for its duty to investors and the public trust for decades." However, a new study by two law professors at Cornell University reveals Anderson's record was no worse than other accounting firms. Anderson had the second-lowest rate of client restatement of revenue of the five accounting firms in the study-only 2.8% of its clients restated, compared with 5.6% for Deloitte & Touche. Why then did Anderson collapse? In a number of post-Enron surveys, audit-committee chairmen say the choice of auditor depends heavily on reputation. However, the study's authors, Messrs Eisenberg and Macey, conclude that most often the decisive factor is price. Then what exactly did Enron get for the $200 million a year it paid Anderson?
Source: The Economist 2003

Richard Scrushy, the founder of the troubled HealthSouth is the first CEO charged under the Sarbanes-Oxley corporate crime law enacted by Congress in the wake of the Enron and WorldCom scandals. Allegedly Scrushy amassed a personal fortune using his firm as a personal piggy bank. The government's 85 count indictment against Scrushy claims HealthSouth was a house of cards and had overstated its earning by $2.74 billion between 1996 and 2002. Insiders say it does not look good for Scrushy. On the witness list are all five former HealthSouth chief financial officers-each of whom have already pled guilty to fraud and are planned to testify in exchange for leniency.

The Federal Communications Commission took its first action to enforce the national "do not call" registry and cited the California mortgage firm, CPM Funding, for calling consumers allegedly on the list. It didn't fine the company but warned that it could pay up to $11,000 for each future violation. To date the FCC says it has received over 400,000 complaints from consumers who say they have received calls they did not want.

Travel Tip: Getting "bumped" has never been more rewarding. If you can handle the inconvenience of a delayed trip, volunteering to be bumped could get you more than a free ticket. Because the airlines have been slow to add more capacity, overbooking has become more common. To keep customers happy, airlines are offering first-class upgrades and travel vouchers of up to $800…plus other juicy perks. Travel experts suggest would-be volunteers should ask for a seat reservation on another flight before agreeing to be bumped. They also say ticket agents have a lot of leeway, so don't be afraid to ask that an initial offer be sweetened. Sure bet: ask for a meal voucher and drink coupons.

The numbers are in! The November estimates put the third-quarter U.S. gross domestic product at a sizzling 8.2% annual rate. Economists expect the last quarter to top out at 4.5%-less than the third quarter, but healthy by any measure. Still, core consumer prices, excluding food and energy costs, fell in November, bringing the underlying inflation rate to its lowest level in 40 years. What does it mean for the economy: steady prices and steady interest rates…and more jobs! The losers: retirees on incomes tied to record low interest rates.
Source: WSJ 2003

Fact: About 10% of all holiday sales are done in the week following December 25th says the National Retail Federation. And you thought WalMart was crowded before Christmas.

Want to save time and be more productive? If so, then you need ActiveWords. Of all of the Cool Tools we have reviewed, this one has got to be our best find yet. This inexpensive and very intuitive application allows you to type a word to launch a program, jump to a Web site, send an email, substitute text, find a contact, or just about any activity or function a PC can perform. With ActiveWords, every word is a gateway to the information and resources inside your computer. The folks at ActiveWords call this new attribute of words the Universal Hypertext Link. UHLs are always present and seamlessly integrate with your computer's existing software. UHLs do what ever you tell them to do. You can define the response you want for a given word, as well as decide your intent based on enterprise specific terminology, alternative meanings, context, and your historical behavior patterns. For example, if you want a stock quote for IBM; just enter the word ibm on your cell phone, PDA device, desktop PC, or other networked device. You are immediately presented with the quote along with other links pertaining to IBM. Your words give you instant access to what you want, when you want it, consistently personalized to your needs, on any computing device.

Quote of the Month: "The smallest good deed is better than the grandest good intention." Anonymous

Last month President Bush signed legislation aimed at stemming the flood of unwanted email that is chocking inboxes and businesses. Though the bill does not outlaw spam, it prohibits spammers from disguising their identities by using false return addresses or misleading subject lines. The law also prohibits senders from harvesting email addresses off Web sites and encourages the Federal Trade Commission to create a do-not-spam list of email addresses, similar to its do-not-call list. Critics say such a list would restrict legitimate businesses from freely communicating with their customers. Others wonder if the FTC has the technology to manage such a list and how it would go about stopping off-shore spammers, over whom, they would have no jurisdiction. The FTC, which must deliver a plan to Congress within six months, has expressed doubt that a registry is even feasible.