While people often think that individuals are the only victims of identity theft, it's simple not true. Business is becoming a more and more frequent target of this type of crime. So let's read this article to discover how business identity theft happens and what you should do as the entrepreneurs to protect your enterprises.
Before the advent of the Internet it wasn't so easy for a business to get credit. Officers of the business would have to go into the bank, present paperwork proving they were authorized to obtain credit under the business name and then paperwork such as credit references and financial reports would have to be completed. The Internet changed all that, and it also put businesses at an increased risk of business identity theft.
Anyone can apply for credit under the name of a business by simply filling out a few questions online. They can also forge payroll checks using the routing and account numbers tied with your business's checking accounts. How can you protect your business's finances and credit?
Keep your business's information secure. Files that contain information like your business's EIN and D&B numbers should be restricted and locked. Also make sure that the computers your businesses use have anti-virus and anti-spyware programs running at all times. This will prevent hackers from getting the information needed to obtain credit under your business's name.
To safeguard your bank accounts keep two separate accounts for your business. A smaller account to cover payroll checks and other expenses and another account with security measures in place for the remainder of your assets.
Taking these steps will help deter any business identity theft that your company may be at risk of.