How To Prevent Business Identity Theft
October 8, 2018
Did you know that identity theft is a crime that impacts more than 10 million consumers every single year? That means one out of 20 consumers is at risk. Unfortunately, identity theft is very real, and with the advancements in technology, it has become easier and easier for criminals to steal identities. Even more alarming, is it is no longer only consumers that are at risk. Although we most commonly associate identity theft with consumers, it is also a threat to businesses, as well.
In an age where digital information is freely available, it is a serious risk for your company and should not be taken lightly. Criminals can file fraudulent tax returns, assume the identity of companies to apply for credit, and impersonate authorized users and empty bank accounts. According to the IRS, because of business identity theft it is potentially costing an alarming $137 million total a year.
There are, however, strategies to help reduce the chance of this happening to your business.
Protect paper and digital company documents
One thing you can do is keep all company documents and records in a safe location. Also, secure all important and confidential paper documents like invoices, bank statements, and financial statements in locked file cabinets.
In this digital age, there are always digital files to accompany the physical files. One of the surefire ways to put your company at risk is not using passwords to protect company files. So always make sure all confidential digital files are in password protected locations.
Use strong passwords
Speaking of passwords, it is becoming increasingly easier for criminals to hack them. Therefore, a company password needs to be strong. Consider changing your passwords every 90 days, and also using a mix of uppercase and lowercase letters, numbers, and special characters. Furthermore, implement a password policy that calls for employees to each to create his or her own password using the guidelines above. Having a “master”password is never advised. By using a universal password for everything in the office, if by some chance a criminal hacks into one file, the thief will then have access to everything.
Shred documents you no longer need
Waste cans and dumpsters are a great resource for criminals trying to steal identities, so it’s vital to dispose all confidential documents that are no longer needed with a shredder. We recommend using a crosscut shredder for maximum security. If you have a large amount of paper to shred, there are actually companies that will come to your location and destroy the documents for you!
Always be on alert while online
Identity thieves use malware to infect computers and gain access to sensitive data. They have also been known to create fake websites in order to trick employees to enter their login and password details. Do not give sites or sensitive information such as an employer identification number (EIN), financial documents, account numbers, etc. via a website or email. If you are applying for credit or doing something where you simply can’t avoid it, make sure the site you are on is secure and the security certificate is current.
Receiving phishing emails is inevitable. It’s important that your employees know to never respond to unsolicited emails asking for data. Just like with a website trying to collect data, never provide your company’s financials, bank statements, federal tax identification number, etc. to anyone unless through a secure platform.
Monitor bank accounts
One last tip that is worth mentioning is monitoring your company bank accounts. Make sure you are reconciling your bank accounts every 24 to 48 hours in order to not miss any suspicious transactions. If you come across a transaction that may be fraudulent in your bank account, you must notify your bank within a certain timeframe in order to to not be held liable for the transaction. However, if caught in time, you will may be able to recover all that was stolen depending on the protection plan you have in place with your bank.
As technology evolves, so do identity thieves. As a business owner, you should always keep pace with the latest prevention strategies and follow a vigilant plan for protecting your company’s identity. By following the precautions above, you can dramatically improve the probability of preventing or detecting business identify theft.
Do you want more info on how to help protection your company from identity theft? We would love to sit down and discuss what is best for your business! To chat, simply fill out the contact form below, give us a call at (906) 774-4051, or email us at solutions@f-ccpa.com. We're happy to help!