Although there has been much attention from the media about how to protect yourself from personal identity theft, there is less attention paid to business identity theft. However, it is just as much of a problem, and businesses have even more at stake. Not only is there the potential for financial devastation, but there is also the added effect of loss of customer trust. Customers who do not trust their service provider will likely take their business elsewhere, which places an even greater financial burden of the affected business.
Because the potential damage from business identity theft is so great, business enterprises need to remain vigilant about protecting information and being aware of any suspicious activity. We have created a helpful list of things businesses can do to help their information – and that of their customers – remain safe.
Protecting Your Business and Customers from Identity Theft
- Invest in a high-quality document shredder and use it for any document that might contain confidential information. This applies to customer files as well as your business files. There are also professionals that perform scheduled shredding of documents, so if your work entails large amounts of paper, this might be a good option.
- Keep a watchful eye on any bank accounts, credit card accounts, or revolving accounts. Any suspicious activity or discrepancy should be investigated immediately.
- If your business handles a lot of personal information of clients, consider making the move to a paperless office and make sure all computers and management software are password protected.
- Make sure your passwords are secure and change them frequently, at least once a month.
- Never divulge personal or business information to people claiming to be calling from a bank or supplier. Remember that they will not ask for such information if they are a legitimate caller.
- Do not click on links in emails claiming to be from suppliers or financial institutions. Call the company or visit their website by typing in the web address.
- Invest in office-grade virus scanning and anti-spyware software. Schedule scans weekly so that any potential problems can be discovered in a timely manner.
- Do not send information via the internet without first making sure you are sending it over a secure connection. These sites will have an https:// web address or a padlock symbol.
- Go through your company credit reports and Companies House entries (when applicable) several times a year to make sure all is in order.
How to Address Business Identity Theft
If you find that your business has become the victim of Identity Theft, there are a few important things you need to do in order to minimize the financial losses.
- If you find that any of your customers’ personal information has been compromised, notify them immediately. They can then take steps to protect themselves and they will appreciate your willingness to be forthcoming.
- If a customer calls to report that someone claiming to be a representative of your company has contacted them, investigate immediately. This is very likely a phishing scam.
- Report any suspected identity theft to the police as soon as possible.
- Notify your banking institution and any suppliers you have to warn them of the suspected identity theft.
- Make sure your company credit reports and your Companies House records match exactly.
- Document any correspondence having to do with the identity theft. This serves as a way to protect yourself from financial damage and will also be used as evidence in a criminal trial against the cyber criminals.
- Review your company policies and risk management strategies. If you do not have any in place, make sure you rectify that immediately. Or, if you have a plan in place and it was breached, make changes to prevent it from happening again.
Just like in the event of personal identity theft, there is no way to protect your business 100%. However, with the proper procedures in place and a plan for handling potential identity theft, the damage to your business and reputation will be greatly minimized.
When your small business insurance is due for renewal call the business team on 01480 402475 for a competitive quote.
Do you have any tips or advice for identity protection? Why not tell us about them, by leaving a comment below.
