Business Identity Theft | What you need to know

Business identity theft, also known as corporate or commercial identity theft, involves the illegal impersonation of a business (or a business’s employee) for criminal gain¹. It’s typically larger-scale and can affect employees and clients alike¹. It can happen to any business, regardless of its size or legal entity¹.

Here’s what you need to know about business identity theft:

1. What it is: Business identity theft involves the illegal impersonation of a business for criminal gain¹. It’s not an information security breach, employee theft, or consumer theft¹.

2. Why it happens: Business identity theft occurs for the thief’s financial gain¹. Businesses operate on much larger scales than individual consumers do, which makes businesses especially vulnerable to theft¹.

3. How to protect yourself: Although there’s nothing you can do to prepare for business identity theft, there are steps you can take to mitigate the fallout once your business identity is threatened¹. This includes securing sensitive information, monitoring financial transactions, training employees, being vigilant, securing your online presence, properly disposing of sensitive documents, verifying vendors, and limiting access to sensitive information¹.

4. What to do if you’re a victim: If your business’s identity has been stolen, it’s important to act quickly¹. Notify law enforcement, creditors, vendors, customers, employees, etc., document everything related to the incident, and seek legal help¹. The Federal Trade Commission (FTC) also provides resources on how to stop and recover from identity theft¹.

5. Red Flags Rule: The Red Flags Rule regulation requires companies exposed to identity theft risks and fraud to implement an identity theft prevention program that includes employee training².

Remember, prevention is the best defense against identity theft¹. It’s also important to regularly update and refresh these measures to ensure they remain effective as new threats and challenges emerge.