What is business identity theft? Business identity theft (also known as corporate or commercial identity theft) is more sophisticated and often more costly than personal identity theft. Business identity theft is essentially the crime of hijacking a business’s identity and using that identity to establish lines of credit with banks or retailers.
Criminals assume a business’s identity and good credit history by manipulating business records and credit agency data, then use that identity to get lines of credit with banks or retailers. With these lines of credit, the identity thieves will purchase commercial electronics, home improvement materials, gift cards, and other items that are easily resold.
What can a business do? – Have a Plan
A business plan is a critical component of operating and running a successful business. An important, and often overlooked, aspect of a business plan is a security strategy. It is helpful to create a business protection plan that includes steps to prevent and deal with identity theft.
Protect Your Business Records and Information
Paper Records: It is important to maintain only those records that are necessary to run or operate your business and to shred those records that are not necessary.
If you have not done so, take an inventory of the documents that you maintain. The inventory will help you to determine your exposure to risk and manage that risk. Any documents or records that you must maintain or need to keep to run your business should be maintained in a secure location. You should also limit the amount of mail and paper with financial information printed on it to reduce the chance of criminals stealing it. If possible, you should consider signing up for electronic statements for bank accounts, credit cards, and bills whenever possible.
Electronic Business Records:
If you have registered your business with the Colorado Secretary of State, you should do the following:
Make sure you have set up Secure Business Filing protection for all your corporate entities. This password protects your corporate entity records/filings from identity thieves who would hijack your corporate entity, its credit and possibly its very assets.
Maintain the “Good Standing” or “Effectiveness” of the business; Note your reporting or renewal month on a calendar; Timely file your reports or renewals; Sign up for e-mail notification for your entity or trade name; and Periodically check your entity’s or trade name’s history.
This process may seem daunting and beyond the time you have, after all, you are busy running your business, so please call me and we can discuss how we can economically evaluate and protect your Business.
For more information, please visit Dunlevie Law Offices