Business Identity Theft - Protecting Yours From Becoming An Easy Target

Identity theft not only effects individuals as it can also effect businesses. Business identity theft has passed underneath the radar in terms of public exposure however, it is very much a threat that is growing.

The lack of public exposure also works in the favor of the criminals as business ID theft is not taken as seriously. Another factor that has put businesses at a disadvantage in the past was the lack of identity theft laws and law enforcement to really tackle the issue.

Business Identity theft can be defined as a criminal or criminal syndicate who steal or use a stolen businesses identity with the aim of setting up banking and credit accounts and use these accounts to purchase computer technology, office furniture and anything else that can be exchanged for cash. These criminals buy the stuff then disappear and the real business is left with the bill.

Business Crime Is More Lucrative

Small businesses are most at risk because they do have the financial muscle to invest in the necessary technology and security deterrents and computer systems to protect themselves from this growing threat. Criminals are noticing that business crime is becoming more lucrative because the lines of credit for a business is huge compared to that an individual. In this way business crime is far more profitable.

For businesses becoming the victims of ID fraudsters can be very costly indeed. Not only will they see large debts appearing in their business credit accounts they can also be hit financially with the cost of legal fees and time invested in repairing the damage to clear their companies name and reputation.

Business Identity Theft Laws

Due to the increased exposure and attractiveness of targeting small and medium sized business laws to protect these companies needed to put in place. It was the Golden State of California that has led the way in giving more protection to smaller and medium sized businesses.

California state has lobbied to amend their existing identity theft laws to expand the term 'person' to also include 'associations businesses, companies, corporations,partnerships, organizations and trusts'. However, on a national basis the protection afforded to corporate businesses is no were near the level of provided to individuals.

In many states law enforcement agencies do not have the power to prosecute or the required resources to investigate commercial identity theft cases. It does not help that business identity theft statistics do not show the true size of the problem.

Many small business owners who have been affected by ID theft and fraud are not coming forward. This can be due to a number of factors but the key difference between consumers is that business owners have their reputation at stake. Being a victim could be seen as a sign of weakness or carelessness. This is even more of an issue if investment money is at stake.

Business Identity Theft Protection

With small-business identity theft on the rise and laws that are not sufficient enough to protect their interests means the onus has to be on the business owner to protect themselves. Many owners of small businesses do not worry or have time to protect themselves from ID fraud because they tend to be far too busy until it is too late.

This is a situation that business owners must avoid. It is important with any business plan they develop that a security strategy is also needed with steps to lower the risk of their business becoming an easy target and to deal with it effectively if does happen.

Below are a few tips that owners can consider in protecting their business interests.

Data security

You may be surprised to learn that the vast majority of ID theft and fraud is actually committed off-line rather than online. It is mostly done the old school way by pick pocketing wallets, re-directing business mail, and opportunist thieves going through the garbage at the back of the office.

If you have not done so already create an inventory of the paperwork you use in your business and go through it and store what is necessary and shred the rest.
Keep all personal, employee and customer details, social security numbers and bank account details fully secure and restrict employee access to these files.
Minimize the amount of paperwork and files that contain sensitive data and secure these under lock and key.
Consider converting banks and credit card statements to electronic files that you can access online from a secure server rather than having them mailed and easily intercepted.
Do not give out social security numbers, employee ID numbers or bank account details to individuals or business corporations unless you initiated the contact and your believe them to be trustworthy and reputable.

Monitoring

Acquire the habit of checking your bank and credit card statements on a regular basis for any suspicious transactional activity.
If you are not planning to extend your credit lines then consider putting a credit freeze or lock on your credit reports. This will prevent anyone using your business name from setting up a credit account.
Sign up for a credit monitoring service that provides 24 hour fraud alerts to notify you off any suspicious activity on your accounts.
Contact the relevant creditor if a bill or transaction appears on your statements that you do not recognize.

Useful Contact Numbers & Websites

Credit Collection Bureaus

Experian 1-888-397-3742

Transunion 1-800-680-7289

Equifax 1-800-525-6285

Dun & Bradstreet 1-800-234-3867

Business Bureaus & Associations

Council of Better Business http://www.bbb.org/us/cbbb/#

On tips and further prevention guidance for your business check out the federal trade commission website http://business.ftc.gov/documents/bus59-information-compromise-and-risk-id-theft-guidance-your-business

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