Identity theft is widespread. No matter where you live or what you do, it’s hard to escape the grasp of this underhanded crime. But what is identity theft, and how does it impact your business?
What is Business Identity Theft?
Identity theft can range from using fake checks to make purchases to the use of stolen personal information to access an account. It could be as simple as someone grabbing your credit card or mail at home, or more advanced like downloading malware onto a computer system. The thief then collects the credit cards and checks that are mailed in by the company and makes purchases. Or the thief may even take over an existing business account, and use the information he or she has stolen to start a new company.
How Does It Impact Your Business?
1. Loss of revenue
People may be less likely to buy from you if they’re concerned that their private information isn’t secure. Identity theft makes businesses’ job of building trust more difficult, which can threaten revenue.
2. Loss of trust
Trust is the foundation of all relationships, including between a merchant and its customers. When customers see that their personal information has been compromised, they’re likely to take their business elsewhere. They’ll be careful about giving their personal information to your company, and you may inadvertently be turning away sales as a result. Credit card companies can offer you a refund when they determine that the credit card numbers have been compromised, but they aren’t obligated to do so. It’s a good idea to contact your card company immediately after learning about identity theft.
3. Loss of reputation
The company may even be forced out of business because of the damage that has been done to its public image by an identity thief behind it. Once a business’s reputation is damaged, the street value of its stock may plummet, because other investors may decide that it’s not worth saving.
4. Increased risk of fraud
If a company holds the information of thousands or even millions of customers, it’s even more likely that someone will try to access this data to commit identity theft. It’s much harder to spot check each and every account, and it could potentially mean the exposure of all customer information.
5. Increased operating costs
There is an initial cost associated with investigating and recovering from identity theft. In addition, there are ongoing costs for all the fraudulent charges that need to be refunded or negotiated with the credit card company.
8 Ways Businesses Can Prevent Identity Theft
1. Invest in Identity Protection Services
Identity protection services can help you monitor your online and offline activity, and they can even help you repair any damage that has been done as a result of identity theft. If your company’s reputation is damaged by identity thieves, a good reputation repair service may be able to help you restore the trust of your clientele. You must go for the best credit and identity protection services by checking out the list shared by sltrib.com
2. Keep confidential information to yourself
The most common form of ID theft is the use of someone else’s personal information in an attempt to gain access to their account. Businesses that don’t keep their own personal information secure are more likely to be the target of this type of crime.
3. Invest in firewalls and security software
Businesses that invest in firewalls and security software are one step ahead of the game when it comes to preventing identity theft. Firewalls provide a wall between your business and the Internet, protecting you from outside attacks. Security software should be used to scan your computer for malware, viruses, Trojans, spyware and other malicious programs that could open up an avenue for identity theft. You should also scan your bank and credit card statements for suspicious transactions and contact your financial institution about any fraudulent activity.
4. Train your employees to spot fraud
Have a training program in place that instructs employees on how to spot and prevent identity theft. A few hours of employee training can save you thousands of dollars and hours of frustration, not to mention possible legal action.
5. Don’t give out information on the phone
If possible, screen your callers before giving out any personal information or account numbers over the phone. Make sure that you know who’s actually calling you before giving away any information about your business or personal accounts.
6. Stay on top of your accounts
Monitor your business accounts and review each transaction before making it. Look for any inconsistencies between what you know of your business’s accounts and what’s written on the receipts, invoices and checks that are sent to you. If there is anything that doesn’t look right, contact your bank or credit card company immediately.
7. Keep an eye on your mailbox
Be sure to check every item that comes into the company every day. If you have a mailroom, make sure that employees are using bar codes on outgoing packages. If your company is still sending it out by hand, send someone to the post office every few days to check to make sure that nothing of value is missing from the mailroom.
8. Use strong passwords
Making sure that you have strong passwords can help prevent your information from being stolen. This is one of the most basic forms of security, but it’s also one of the easiest to fix. Many websites will even allow you to create a secure password for yourself when you sign up for an account online. There are also many online tools that can help you remember and keep track of your passwords to make sure they’re strong and hard to guess.
Conclusion
If identity thieves can get to your company, they will try to use that information to steal from you or a customer. All it takes is one slip up by an employee or one weak link in the security chain, and you’ll be left with a mess on your hands. Make sure that you’re doing everything in your power to prevent this common form of fraud by taking the above steps.
