Business Identity Theft — A Must Read for Small Business Owners!

Businesses are NOT excluded from identity theft threats.

As a company owner, it is your obligation to protect your organization from countless kinds of fraud. This isn’t easy when you’re unsure of these fraudsters get the job done to do. Worse, there is a lack of information that you can find on this subject on the internet.

However, , We’re likely to clearly outline the following:

  • The types of identity crimes that occur against companies,
  • How fraudsters figure out how to pull off these crimes,
  • Reputable inner security protocols to follow along,
  • What to do if your business gets attacked, and,
  • Whether a company ID theft protection plan actually helps.

That is a lot to pay, so let’s begin!

What Types of Business Identity Theft Exist?

Identity thieves know no bounds and as the saying goes, “Where there’s a will, there’s a way.”

The single way to spell out the types of company identity theft is to examine the approaches these use.

1. Impersonation with the intent of forging and cashing out credit lines.

Individuals are not the only ones who have unique identifying numbers; a business’s EIN number (Employer Identification Number) is just as sensitive. Then it is just a matter of time before the fraud begins, if it is obtained by a fraudster.

In fact, all an identity thief needs to impersonate a company and defraud funds is the business’s EIN number, physical address, and legal name. This is why the EIN number is such a sensitive piece of data, as another two pieces of information are accessible through public records.

The EIN number of your business can be used for many reasons, for example to open a new business bank account, to process W-9 forms, and also to report taxes and wages. There are a number of other examples; ultimately, there is a significant paper route left handed.

2. Breaking in through the owner’s individual information.

An identity thief could use the personal info of the company owner to defraud the business enterprise. This would be a more extensive crime in most cases and often requires ID cloning and personal impersonation. It could also be targeted at different staff members.

With the fraudster pretending to be the company’s owner, it becomes simple to access the finances of the business. The fraudster can subsequently obtain cards and new cards in owner’s and the organization’s title.

Info is shown through your business’ public records. As such, it is important to understand how to protect yourself from such a security violation.

3. Theft of documents or company credit cards.

All it takes is for one piece of paper to wind up in the wrong hands, if it taken or had been lost. From there, that person has the capability to defraud your business to oblivion. In fact, it doesn’t need to be documents they steal — virtually stored or transmitted information about your company can be just as dangerous!

Recall , there are many new faces you learn to trust when you start a business. There is not any guarantee that you won’t employ a’bad apple’ at a certain point. This could be the janitor that comes in to clean at night, or your management team members.

You must always:

  • Maintain sensitive paperwork locked and secure,
  • Be cautious of who has access to such information,
  • Be conscious of anything you entrust an employee with, also,
  • Avoid e-filing sensitive information on minimally secure workplace servers.

Even more, it’s crucial that you shred prior to disposing any sensitive cards or paperwork. Firms are often targeted at dumpster divers, and you don’t need a simple lapse of decision causing problems for your business.

GFI released a whitepaper detailing how small business owners can build secure workplace platforms. It also gives a great deal of insight into technical tactics utilized by cyber fraudsters, therefore it’s a worthy (but long) read.

And if you are not scared of cyber threats, you should be — we covered networking identity theft lately and found a few scenarios.

The takeaway that is very notable was that it is not just about what the business owner does to guard their business. If just one worker’s e-mail gets hacked, it could spiral into a horrible mess — even if they do not have security clearance, then the fraudster could impersonate them to steal data or more accounts. If you think your employees wouldn’t be so gullible, think again.

How Do You Avoid Business Identity Theft?

The fact is than it is against yourself that it is even more difficult to guarantee protection. There are many factors that are out of your control — and the very best ID protection program can’t prevent your employees.

However, there are certain things you can do in order to step up your safety also by taking these measures there’ll be less’easy manners’ for fraudsters to target your company.

Here are some tips:

  • Get business bank account statements sensibly instead of through the mail,
  • Possessing an IT guy on board which you could actually trust to maintain network security,
  • Keep up-to-date with the latest online security dangers,
  • Manage internal communications through internal servers,
  • Avoid sharing sensitive files and information over the net, as well as
  • Notify the agencies if you ever end your enterprise venture.

Of course, you will find just some of the several things that you can say about how to stop business identity theft. What actually matters is that team knows how to stay secure and that entails knowing how to manage sensitive info. Use the right training materials to safeguard your workers know how to manage themselves; there are many different security standards at both state and national levels.

For safety purposes, we also advise that you get your employees to sign Non-Disclosure Agreement (NDA) forms. This will make sure they are rightfully convicted should they spread any sensitive information.

What might be more distressing is the fact that your business’s credit report is behind a doorway with no locks, and inside it is a master key. You may understand why in a minute…

Identity Theft and Business Credit Reports

Your business’s credit report is available for anyone assuming they are ready to pay the cost to pull the document. They could do this through any of the four credit bureaus.

If you have not heard of Dun & Bradstreet or are not yet in business, they are the credit report bureau and verification service for businesses; they do what the other three do for people, but for companies instead.

Also, Should You not understand what a business credit report contains — here it is:

  • Company Profile. Fundamental information regarding your company, including it’s contact details and the physical mailing address.
  • Charge Overview. The overview of all the company’s accounts, including bank, credit, provider, and service provider accounts.
  • Public Records. The company’s registration information, as filed with the Secretary of State, any judgments, tax liens, or bankruptcies.
  • Other Business Details. Some examples include: additional names the company uses, the titles of the proprietor (s) and the guarantor(s), and and remarks from companies and/or creditors.
  • Business Credit score . This credit score indicates how likely it is that your company will run three-months late on a payment, or have a debt charge-off, within the next year.
  • Business Failure Score. This credit rating indicates how likely it is that your company will fail within the next calendar year, whether as a result of a formal or casual liquidation.

These are the main pieces of information that you are likely to discover, but remember: it may vary a lot depending on what credit agency you ask your credit report from.

Here are five quick tips:

  1. As the company owner, you may want to put a credit freeze on your credit report.
  2. Avoid using personal credit cards for business expenses and vice versa.
  3. Inquire into your company’s card issuer over unsuspected charges of all sizes.
  4. Assess your business and personal credit report at least one time every four months.
  5. Jot down all open accounts and cards, in the case you need to notify of suspected fraud.

And talking of taking action, you also need to know how to do that should you suspect your organization got targeted.

What Must Business Identity Theft Victims Do?

The process will vary depending on the situation of the business, but following is a general outline on the steps a business owner would need to take.

#1 — Notify your bank and creditors about the suspected fraud to put a freeze in your current accounts.

#2 — Notify all four credit bureaus — Dun & Bradstreet, Equifax, Experian and TransUnion.

#3 — File a police report from the authority of your business, and with the FTC.

#4 — Notify the rest of your creditors, service providers, etc., of the financial pause.

#5 — Draft up and send in the’Statement of Correction’ — processed in the country level.

#6 — Keep records of all communications, whether suggestive or not.

#7 — After all is processed, check out with all the credit bureaus for an update.

#8 — Maintain all documents about the incident stored away somewhere safe.

#9 — Start monitoring your business credit report on a regular basis.

Could Business Identity Theft Protection Save You?

It’s funny, because identity theft victims learn how these solutions operate and often consider ID theft security as nothing more than a scam — till they become victims themselves.

There are many parts about personal identity theft protection that we do not like. Particularly, it’s senseless to pay for so many features that are free to handle all on your own.

However, the circumstances are somewhat different when it comes to investing in company identity theft protection.

Doing so will give one of the following key benefits:

  • Immediate alarms whenever an identity theft effort is suspected,
  • More regular access to your business’s credit file,
  • simpler to catch stolen data that is offered in black markets,
  • A speedier recovery with customer victim protection following a data breach, and,
  • Security for not just the company, but also the company owner.

This is just a scratch in the surface of what a business identity theft protection program can do for your business. See what iDefend Business does to shield businesses from identity theft, if you are interested in learning more.

Note: We no means are giving our recommendation for this service provider (review to come), however they have many of the features you must need. Above all else, you must make certain to avoid the’company protection programs’ that just work for data breach situations and very few other circumstances.

Conclusion: Your Company Is in Danger!

With so much time chasing profits, it is important to slow down for a moment and focus on preventing the matters that may wipe out all your hard work. One of these is the identity theft scenario that contributes to frauds against the accounts that are valuable of your business.

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