Identity Theft in Small Businesses
Identity theft in a small business happens to Millions of Americans who scrupulously guard their identities and personally identifiable information. Also, they fear that their bank accounts will be compromised, their identities stolen, and a parade of difficulties will follow them at the hands of those who wish to steal their identities. However, they will often not exercise the same care with their business “identities.” Even for small businesses that try their best with free tools, professional identity thieves can evade this type of protection and gain access to lines of credit or accounts. Also, here are some of the ways businesses can protect their identities.
What is Identity Theft?
First, enroll in a monitoring service. Businesses can enroll in monitoring services that continuously monitor any activity on their companies’ credit reports, looking for any red flags.
Next, establish a FEIN for your business. For many small business owners, using their Social Security numbers and establishing sole proprietorships are the easiest things to do practically. However, if either is compromised, this could lead to exposure for both their personal and business finances. Also, small business owners should obtain Employer Identification Numbers (EINs) to separate both and reduce risk.
Protect your data from Identity Theft
Next, keep your data safe with an established data protection system. Keeping your passwords in a safe, protected place is crucial to protecting your data. Anti-virus and anti-malware software should also be used, in addition to a secure password manager.
Cyber Insurance can help
Finally, cyber insurance can be a great way to protect your business. A cyber insurance policy can make all the difference in recovering from significant loss related to identity theft in the unfortunate event it does happen. Call or email us today, and we can review your insurance coverage to ensure your business is protected. We are always here to help.