It doesn’t take much to become the victim of identity theft: just a name, address and birthday are all crooks need. Our personal and financial information is so valuable that some experts say we should treat it as carefully as we do cash — because that’s what it’s worth to the crooks.
Unfortunately, identity theft isn’t just a problem affecting individuals: Big or small, businesses are also the target of thieves. The crime can impact their reputation and income — and put customers at risk.
What is business identity theft?
We know how identity theft or fraud affects individuals: someone steals your information and uses it to commit fraud — like apply for loans or credit cards, rob your bank account, rent property or obtain an I.D., for instance.
How does it affect businesses? They have an “identity” too — that is, they have accounts, assets, property, licenses and brands. Even their name and logo can be used to defraud others. For instance, one of the most common scams in Canada is the computer virus scam in which crooks use the name of legitimate companies like Microsoft to fool their prey. You may also have seen, phishing emails, fake business ads or fraudulent solicitations. Well-known charities and the Better Business Bureau (BBB) have had their names, logos and reputations used to perpetuate fraud.
As damaging as these tactics can be, there are even costlier threats. Crooks can use sensitive information to access company assets, exploit company resources (like credit cards and phone systems) and even use their identity to secure new clients and payments. For example, a crook could steal a business’s information to place a large order from one of its suppliers. And when the bad guys take off with the goods, guess who’s left with the bill?
Businesses are also the target of identity theft because they collect a lot of information about customers. In recent years, we’ve seen a few security breaches at major companies like Sony and Target where crooks have compromised their databases — or the database of their marketing company — and stolen customer data.
However, theft doesn’t always involve the internet. All that information is stored somewhere, like on a computer or hard drive which can be lost or stolen.
The theft isn’t always high-tech: even an unlocked file cabinet can tempt an unscrupulous employee or fake service person. Unfortunately, some cases of identity fraud are "inside jobs" and some businesses have even been targeted by their clients, suppliers and competitors.
And no, size doesn’t matter. Bigger companies can become targets because they have well-established brands and a wealth of consumer data. However, small businesses are also attractive because they don’t have the financial resources or personnel to deal with data security.
