A business prospers because of hard work, excellent marketing strategy, customer care, and very good business credit. However, like personal credit, your company's credit is a very valuable commodity to identity thieves. When they get a hold of your company's good credit, it inevitably becomes bad credit.

What is business identity theft? It's a type of fraud that targets companies. It's a form of white collar crime wherein an impostor steals confidential business information. The thief then uses the stolen data to acquire large product purchases in the name of the victimized company. Business identity theft is not classified as a company data breach wherein customer information is what the thieves go after. It's assuming the identity of the company itself. The thief can misuse the company's credentials or identifiers to falsify files and records to defraud suppliers, creditors, the company officers, and the company owners.

Preventing business id theft needs effective id theft protection, especially when major crime organizations now perceive this type of fraud as their key money-maker. Identity theft is no longer exclusive to consumers. When identity thieves found out that companies also have identities that can be stolen and used, they jumped at the opportunity. As they did, they realized that it was pretty easy to make unassuming businesses as id theft targets.

Reasons Why Businesses are Targeted by ID Thieves

The following are some of the reasons why identity thieves are targeting businesses:

1. Businesses have large balances in their bank accounts.
   
   Companies always make sure that they maintain large balances in their accounts as compared to consumers. Thieves may even end up with hundreds of thousands or even millions of dollars in their pockets. Because of this, it's easy to see why identity thieves switch from consumers to businesses as their targets.
   
   
2. It's easier to open new credit and new accounts.
   
   When thieves use business names and data to open new accounts, they immediately get approved. A business has a higher credit limit than a typical consumer. Financial establishments would be more eager to open new accounts for a business.
   
   
3. Easier and faster to obtain goods.
   
   Companies usually have flexible terms in payment wherein they could order goods and just pay for them within 10 - 30 days after they receive the sent invoice. Thieves are then successful in getting their goods without even paying for them.
   

How to Protect Your Company from Business ID Theft

As the company owner, it's up to you to protect your business from such creative and persistent identity thieves. You could protect your business from identity theft through the following:

1. Review your company's banking agreements.
   
   The UCC (Uniform Commercial Code) covers business bank accounts. See if your bank has shortened the timeline for fraud reporting, elevated their fraud liability, or lowered their fraud protection.
   
   
2. Have control and protect your company from fraudulent transactions.
   
   You should activate dual or triple controls when it comes to facilitating online transactions. Have more than one person approve wire transfers. This makes it difficult for thieves to access your company's account and funds. You could also set the wire transfer feature of your account to the lowest possible amount so that you could prevent thieves from wiring a significant amount from your company's account.
   
   
3. Keep an eye on your business accounts on a daily basis.
   
   This practice allows you to monitor every activity that takes place in your business bank account. It would be easier for you to do this if you enrol in online banking. You could also ask your bank to send you email and SMS alerts in case any suspicious activities arise. Eliminate your paper statements and just opt for online bank statements, to minimize exposure. If you do have paper documents, shred them first before you dispose of them.
   

Running a business subjects you to possible business identity theft. May these tips in protecting your company's credit be helpful in your battle against this white collar crime.