When we think of identity theft we typically think of individual consumers whose information has been stolen using credit cards and bank records. That's a reasonable assumption due to the fact that most identity theft happens at the consumer level. But truth be known, businesses are also vulnerable if they leave themselves unprotected. Identity thieves with big dreams often target businesses because their multiple layers of management make them easy targets.
Typically, larger corporations are not regular victims of identity theft because criminals know they have the resources and wherewithal to deal with it. Between legal protections, an army of corporate lawyers, and sympathetic authorities, targeting large corporations is generally not a good idea. However, small and mid-sized businesses often don't have the same resources. That makes them easier targets for identity thieves.
Business Credit Cards
Companies that use credit cards as a means of paying bills or buying standard office supplies are just as vulnerable to identity theft as the typical consumer. An experienced thief can retrieve the information off of a business credit card just as easily as a consumer credit card. Making matters worse, some businesses don't do a thorough job of checking monthly statements in order to examine individual purposes. It is possible for a thief to run up charges on a business credit card for months at a time without being detected.
Businesses should protect their credit cards with all the same precautions as the business owners do their personal credit cards. They should not be handed out to just any employee; they should be restricted in terms of what they can be used for; statements should be examined and reconciled on a monthly basis. If you do suspect your business credit card has been compromised you should contact your bank or credit card company immediately.
Virtual Office Space
In recent years, identity thieves have come up with a number of creative ways to steal from small and mid-sized businesses. Among those creative ways is using virtual office space to deceive the company's vendors. By using a virtual office the thief can contact vendors and have supplies and equipment delivered to the fake address, all without the knowledge of a legitimate company knowing what's going on. It is very effective and easy to do.
To make this scheme work the thief rents virtual office space through the same agent used by his intended target. By using the target's company name and virtual office provider the thief is guarding against vendors calling and checking on the legitimacy of the office space. To avoid having deliveries made to the target company the thief simply provides a different delivery address which could be anywhere; perhaps an office building across town. Victimized businesses that don't regularly check their lines of credit with vendors can easily fall victim to this scheme.
To avoid becoming a victim business executives and managers should establish a regular relationship with all vendors. Part of that relationship should include reviewing monthly statements, directly approving any new orders, and so on.
Compromised Networks
Perhaps the biggest threat for small and mid-sized companies is identity theft through compromised networks. If thieves can hack into a local area network (LAN) they have virtually unlimited access to any and all information found on company computers. It is vitally important that any company which utilizes a LAN have certified and experienced IT personal with the proper knowledge in network security. It is the job of these individuals to insure that the local network is never compromised.
In addition to stealing financial information, bank account numbers, and so forth, thieves who penetrate a compromised network can also steal company secrets to be sold to rivals. The best way to do this is to infect the LAN with spy bots that will harvest information and allow it to be retrieved remotely. Because these types of operations are continually evolving to new levels of sophistication, it requires equally sophisticated IT experts to keep your LAN secure.
While it's true that identity theft is not as popular among businesses as it is among consumers, it can still happen nonetheless. Business owners and managers need to be diligent about protecting their sensitive information in order to prevent themselves from being a victim. This includes little things like shredding documents as well as big things like securing a network. Your risk of becoming a victim at the business level is in direct proportion to the amount of effort you put forth to prevent it.