Identity Crisis
Make no mistake--business identity theft can happen to you if you're not careful.
Personal identity theft is all too common. But what do you do
when your business information is stolen and someone charges
purchases to your accounts and ruins your business credit history?
An estimated 52,400 businesses were affected by ID theft as of June
2002, an increase of 74.8 percent since January 2001, according to
the FTC. John R. Vacca, author of Identity Theft (Prentice
Hall), suggests a multipronged approach to prevention. Limit the
employees who have access to sensitive information, screen
outsourcing companies thoroughly, and always encrypt sensitive data
on your computer network.
Because one form of business ID theft happens when others forge
payroll checks against your business accounts, Johnny R.
May, author of The Guide to Identity Theft Prevention
(1st Books Library), recommends guarding check stock like cash.
Don't use preprinted check stock; instead, encourage direct
deposit, and shred sensitive documents on a regular basis.
"The more paper you have, the more your company is at risk for
fraud," says May. Keep two accounts, one for transactions and
one for large sums of money from which only you have the authority
to withdraw. That way, anyone who gets into your transaction
account can't clean you out completely.
If your information has been compromised, immediately report the
fraud to police. For more tips, visit www.identitytheft.org or the Association of Certified
Fraud Examiners at www.cfenet.com.
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