Small Business Owners, Do You Know About Business Identity Theft?

What Is Business Identity Theft?

The stories on business identity theft are often focused on cybersecurity vulnerability e.g. malware, phishing scams or theft of consumer identities.

An under-reported threat to small businesses is the theft of the business identity itself.  Similar to consumer identity theft, business identity theft occurs when a business’s identity is impersonated. Just like the personal identity theft, it is made possible when a thief, through various means, gains access to the unique business identifiable information that can then be used to create a “synthetic business identity,”.  A thief can steal a business’s identity by gaining access to the business’s identifiers and credentials and then using that information to make transactions in the name of the business.

The temptation for thieves is obvious – business purchases generally involve higher dollar amounts; therefore, more expensive purchases are less likely to raise red flags. Businesses also generally have higher credit limits affording thieves a better opportunity to enrich themselves.  Small businesses also tend to have minimal security in place to prevent identity theft.

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Starting or running a small business comes with a lot of important decisions, many with serious legal ramifications. Our Business attorneys are here to answer your questions and help you navigate the legal side of owning a business. Whether you’re just getting started or need guidance on business structure, contracts, or compliance, we’re ready to support you. Call us today or fill out a quick form to schedule a consultation and take the next step with confidence.