A company's greatest security threat may not come from outside sources, but from its own employees. Employers need to take measures to reduce potential risks.

Among the possible security threats a company's employees may pose:

Information technology employees potentially represent one of the greatest security risks. IT employees frequently work during hours when other employees are off, and in restricted-access settings. Some IT employees feel their work is unappreciated, and bad morale can present a big problem.

Financial and accounting employees have access to, and unique knowledge about, the company's money. Bad morale among financial employees could give workers an incentive to steal.

Employees taking work or work materials outside the office can put secure data, such as client or consumer identification information, at risk if misplaced. Although forbidding employees from taking work home may be counterproductive and impractical, restricting who can do this and why can decrease the risk.

Employees with drug or gambling problems may be tempted to steal to sustain their addictions or cover their losses.

Among the tips Pepper Hamilton offers employers to diminish possible security breaches caused by their employees:

Conduct background checks: Before making a hire, companies should conduct an employee screening that includes prior references, a criminal background check and a credit check.

Establish a social contract: People are not as loyal to their employers as they once were. But, more importantly, employees generally do not feel as valued and appreciated. Employers need to pay more attention to the way they treat their employees on a daily basis, and establish a comfortable and loyal work force.

Make employees aware of confidentiality policies: Employees should be informed of a company's general policies, especially with regard to e-mail. Take time to train, educate and remind on an ongoing basis.

Adapt company policies to new technologies: As technology continues to evolve, businesses need to be informed and adapt their policies. Now that cell phones can take pictures, and external hard drives can easily download a computer's entire content, there are more ways sensitive information can be compromised.

-- James P. Thomas, Pepper Hamilton LLP, thomasjp@pepperlaw.com

Tax break for C corporations

Thanks to the Tax Relief and Health Care Act, a special charitable contribution deduction has been extended.

An augmented charitable deduction has been available for some time to C corporations that contribute computer technology and/or equipment to educational organizations or tax-exempt charitable entities organized primarily for the purpose of supporting elementary and secondary education. The Community Renewal Tax Relief Act of 2000 had expanded the definition of eligible recipients for these purposes to include public libraries, effective for contributions made after Dec. 31, 2000.

The Tax Relief and Health Care Act of 2006 has retroactively extended for two years the enhanced charitable deduction for computer technology and/or equipment. The deduction is set to expire for contributions made during any tax year beginning after Dec. 31, 2007. Only donations made by C corporations could qualify for the enhanced credit. S corporations, personal holding companies, and service organizations are not eligible donors.

-- Lawrence J. Sipos, Alpern Rosenthal, lsipos@alpern.com