Identity theft is no longer only a consumer crime. Thieves have learned that businesses also have identities that can be stolen. From a criminal’s perspective, it is significantly more cost-effective to steal business identities than consumer identities. Businesses have bigger bank accounts, higher credit limits, and large purchases go undetected more easily. Thieves are targeting businesses for quick and easy profit, and unsuspecting businesses can be very easy targets. It is a serious risk and you need to know the facts and how to protect your business, before it becomes the next victim.
What is Business Identity Theft?
Business identity theft involves the actual impersonation of the business itself. It can occur through the theft or misuse of key business identifiers and credentials, manipulation or falsification of business filings and records, and other related criminal activities. Business identity theft is not considered an information security breach, or an incident involving the loss or theft of confidential consumer information that a business may possess, according to Business ID theft.
Forgery
Forgery is a type of fraud. Criminals will try to pass themselves off as someone else by forging a signature. Whether they are signing checks or other documents as someone else, they are usually always in it for the money. The crime of forgery generally refers to the making of a fake document, the changing of an existing document, or the making of a signature without authorization. The most common form of forgery is signing someone else’s name to a check, but objects, data and documents can also be forged.
Falsifying and Manipulating to Impersonate
A great deal of information about your business may be publically available. Criminals can manipulate or falsify this information in an attempt to impersonate your business. Here are 3 of the most common ways in which criminals impersonate businesses:
- Business credit reports are often used to commit business identity theft because they are available to virtually anyone and most information in business credit reports is self-reported. Because a large amount of the information is self-reported, there is a potential for criminals to gain access to and manipulate the file, changing the information of their target company in order to deceive creditors or lenders.
- Criminals will also fake business credit applications, it an attempt to impersonate the business. Business credit applications request sensitive business information, such as EIN, account numbers, trade references, that you would not want in the hands of criminals. Business credit applications also frequently request the personal information of the business owners as well. Yet, business credit applications are often received, unquestioningly completed, and submitted to the requesting party without a second thought, making it easy for a criminal to impersonate your business if they get ahold of this information. It is also easy for criminals to create a fake credit application to defraud the business, or obtain loans or lines of credit in the business’ name.
- Business identity thieves can manipulate business financial reports, or easily fabricate such reports altogether, in order to deceive prospective creditors and lenders by making the business appear better off than it may be. False financial reports are used to add to the appearance of legitimacy and financial capacity intended to fraudulently obtain loans or lines of credit in the business’ name.
Depositors Forgery Insurance protects against Business Identity Theft
Crime coverage can protect against forgery and depository, one of the major ways business identity theft can occur. Depositors forgery insurance is an insurance policy a company purchases providing coverage in the event of a loss due to a forged check or other financial instrument. It provides coverage for loss should someone, in an attempt to defraud you, alter the amount, name of payee or endorsement on a check, draft, or similar instrument issued by you. Contact TJ Woods Insurance Agency today to find out more about depositors forgery insurance to protect your business from identity theft.
