Safekeeping Your Company Identity

Why are small businesses often a target for identity theft? Here are a few simple reasons.

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Why are small businesses target for identity theft? 

  1. It is easier to get information on a small business compared to that of a multinational company with several business names and most likely more account security.
  2. Compared to an individual account, scamming a small business has higher returns for identity thieves.
  3. Again, as compared to an individual account, a fraudulent transaction may easily be overlooked because there are more transactions. Most likely, too, there is more than one person making purchases or transactions for the business.

How do you protect your small business from identity theft?

  1. Always keep track of your credit. There are identity monitoring services that you can use and these services monitor your credit for any unusual transactions.
  2. Establish your company with credit bureaus like Equifax, Experian and Transunion. Afterwards, you can even place a security freeze on your credit report, so that only companies that you’ve already done business with are able to access your credit report.
  3. Secure your files all the time. Do not be complacent about where you save your files and how you save them. Leaving your company documents just lying around can make you very prone to identity theft.
  4. Limit the employees who will have access to company documents in your computers. For the most part, you, your accountant and senior manager, are the only ones who need to have access to sensitive company documents. If these are saved in your computer, put them in folders that are password protected and to be accessed by only the authorized people.
  5. Passwords are important! Do not take for granted the power of passwords. Especially for your company documents, keep them secure by using strong passwords.

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