ID Theft is the crime of stealing someone else's identity details, such as an SSN, SS Card, or a name, in order to commit fraud or any other crime. Commonly, individuals are impersonated by criminals, in a bid to steal from them, or even open fraudulent accounts from them. But another type of ID theft also exists: business identity theft.
One such case is that of small business owner and auto repair shop owner Ivan Burman, who received a bill from AT&T amounting to $852. Someone carrying a driver's license with the name "Antony Gilmore" opened an account in behalf of "Burman Collision and Automotive Service Center," for eight phone lines with AT&T.
It turns out that no driver's license in Pennsylvania has ever been issued to an "Antony Gilmore," and, much less, Ivan Burman had never ever hired anyone named Antony Gilmore.
Burman’s case is an example of a Business ID theft. The man behind the name Antony Gilmore used some of Ivan Burman's business details as a front in order to apply for phone lines, fraudulently. If the ID theft of an individual happens by "borrowing" a person's name or SSN, then the theft happens when someone misrepresents the company, or uses the details of the company without authority to do so.
Business identity theft protection is crucial because more properties can be obtained by a business (and more losses incurred) when its business details are used. This crime has grown in incidences over the past few years; the number of businesses that have been affected is alarming.
One of the first victims of business ID theft in Tennessee was the AAA Termite & Pest Control in Memphis. Scott Burnett, whose family has owned and operated the pest control company for at least four decades, discovered that the Yellow Pages delivered to him had entries for three other companies named AAA Pest Control, or some other permutation of the brand. His foremost concern was that those marauding as his employees or associates were entering his customers' homes, mishandling the pest control process, possibly poisoning customers and their pests, and leaving a trail of possible lawsuits directed at his family business. Not a very happy thought for any honest, reliable, decades-standing small business whose main currency is trust.
So how does a small business protect from identity thieves?
- Protect your customers' information first and foremost. Keep data under lock and key. Always make sure that old, unneeded records get shredded and destroyed beyond any legible state. Also limit the access to these files to trusted employees.
- Burglar-proof your business' premises. One of the ways that data leaks could happen can come from actual, physical burglaries. Ensure that no burglaries happen to and within your business, to minimize the risk for an even more far-reaching consequent theft: ID theft.
- Be wary of former employees. One single demographic that can wreak the most damage to your company via ID theft would be the former staff. Delete all accounts and revoke all access given to former staff. This way, no "vendetta damage" could be wreaked.
Business identity theft is messy business. But if you are vigilant, and you have an idea of what to do, you will be able to survive such a situation.
Amy is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics on monitoring credit regularly that can help people detect id fraud and prevent it. Follow her and discover more about how credit monitoring helps in id theft prevention.
