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Dangers of Business Identity Theft

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 gain. It’s typically larger-scale and can affect employees and clients alike. It can happen to any business, regardless of its size or legal entity.

Here are some of the dangers associated with business identity theft:

Depleted reputation: The business brand and employer brand can be severely damaged.
Financial loss: There can be withdrawals from your business bank account and unexplained charges on your small business credit card.
IRS audit penalties: The business may face penalties from IRS audits.
Drop in credit score: The business’s credit score may drop.
Debt: The business may face debt.
Criminals can steal a business’s identity by gaining access to financial or other sensitive information. They have a variety of ways in, including hacking, malware, phishing emails, swiping credit card info or even finding old sensitive documents that have been improperly thrown out.

Criminals can steal a business’s identity by gaining access to financial or other sensitive information. They have a variety of ways in, including hacking, malware, phishing emails, swiping credit card info or even finding old sensitive documents that have been improperly thrown out.

It’s important for businesses to take steps to protect themselves from identity theft. This includes using high-end security software, properly disposing of sensitive documents, and being vigilant about unusual activity in their accounts.

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