How to Protect your Business from Identity theft
Every year, an increasing number of businesses fall victim to the fast growing problem of identity (ID) theft; in which the identity of your business or an employee is stolen or copied by a fraudster to obtain credit falsely or cause financial and reputation damage your business.
The potential damage an ID theft can cause is huge, especially if you do not catch the problem quickly. This is made more difficult because ID theft can be very hard (if not impossible) to spot before damage has taken place.
Luckily, there are some relatively simple ways to help lower the risk of ID theft; the following article looks at the damage it can cause, and how you can help deal with it.
How Can ID Theft Affect Your Business?
Identity theft can cause a number of problems for your business, the majority of which fall into one of two categories; Financial and Reputation:
Fraudulent Transactions
If a fraudster manages to get your bank account or credit card details, they may be able to transfer sums of money to their account (I.e.: An account set up to look like it belongs to your business) . They may also be able to apply for credit using your business details; which could go unnoticed until bills start to arrive.
Companies House Fraud
This is where a fraudster uses your company house records to forge a change of address form (to a post office box or other temporary business address), or add their names as directors to your business. This allows them to use your credit score and other data to take out fraudulent credit and other transactions.
Fake orders
Someone who has been able to copy the identity of a person at your business could be able to order items under your business name and try and arrange delivery at a different location. If they have your credit card information they can charge it straight to it, or they will collect the product and leave you with the invoice.
The fraudster can also try to get a product delivered and then return it for a cash refund.
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