The risk of identity theft is an unfortunate and harsh reality today. It’s alarmingly easy for culprits to steal personal information, even something as sensitive as your social security number, to rack up large amounts of debt in your name. Despite being cautious with your social security details and personal information, the threat of identity theft remains. It may hinge on an event as simple as losing your laptop or smartphone, or if a corporation you interact with suffers a data breach.
Interestingly, it may surprise many that business identity theft is also escalating. Also known as commercial or corporate theft, it entails fraudsters using a firm’s credit line for personal gains like setting up offices or merchant accounts. If such theft goes undetected for a long duration, recuperating can be challenging, and could even plunge the business into bankruptcy.
HOW TO GUARD YOUR BUSINESS AGAINST IDENTITY THEFT
To shield your business from identity theft, you should follow rules akin to personal identity protection:
Destroy any documents holding sensitive data—preferably, use a confetti shredder to prevent reconstruction of shredded paper.
Frequently request a copy of your business’s credit report.
Enroll for electronic alerts from your banker and creditors.
Have a strict protocol to adhere to if a business credit card gets lost or stolen.
Immediately report any suspicious activities to your bank or lender.
WHAT TO DO IF YOU SUSPECT YOUR BUSINESS’ IDENTITY HAS BEEN COMPROMISED
In case you suspect that your business’s identity has been compromised, the approach should mirror what you’d do if your personal identity was stolen:
Lodge a police report.
Get in touch with all your banks and credit card companies, besides anyone else who provides your business with credit.
Reach out to the fraud department within credit reporting bodies and activate a fraud alert on your accounts.
Unfortunately, cleaning up your business’s accounts after identity theft might take a considerable amount of time, and the damage could be more severe than what an individual might face. That’s why it is crucial to protect your business’s identity.
CONSIDERING INVESTING IN CREDIT MONITORING
Some credit reporting firms, including Experian, offer services that monitor your business’s credit report for a certain charge. They will promptly notify you if any questionable activity is detected, helping curb fraud before it spirals out of control.
Just as you ought to diligently monitor your personal credit and guard against identity theft, so should you with your business. The ramifications of business identity theft can be disastrous and could potentially lead to the downfall of your business. Hence, an investment in preventing business identity theft is indispensable.
Source: http://www.sos.state.oh.us/SOS/Businesses/BusinessInformation/BusinessIdentityTheft.aspx
