Identity theft is a growing threat for small businesses. Business identity theft costs U.S. companies billions each year, and the fallout can be severe: disrupted cash flow, strained relationships with creditors and suppliers, and long-term damage to reputations.
When it comes to identity theft, prevention is only part of the equation — monitoring is just as important. Here are some tips all businesses should know in order to prevent identity theft and protect their company.
How businesses can protect themselves:
- Check your business credit report Watch for any unusual activity.
- Use a monitoring service. Continuous monitoring can alert you quickly to changes in your company’s credit.
- Secure your systems. Keep software updated, limit access to sensitive information, and use strong security methods.
- Work with trusted partners. Only share financial or business information with verified, reputable vendors.
What to do in the case of business identity theft:
- Place a fraud alert with the major credit bureaus (Experian, Equifax, TransUnion). This flags your report and signals to lenders to take extra precautions.
- Report the theft to law enforcement and document all communications.
- Contact your bank immediately for support and guidance.
Business identity theft is a serious crime but staying alert, monitoring regularly, and taking swift action can help in protecting companies and preventing it from happening.