Business Identity Theft: Strategies to Protect Yourself

Business Identity Theft: Strategies to Protect Yourself

In 2021 alone, there were roughly 1.4 million reports of identity theft in the United States. Unfortunately, according to the data, these numbers are going to increase. This is because not many business owners know the steps they need to take regarding identity theft solutions.

Business identity theft is something you should keep an eye on when running your business. It affects not only you but the lives of all your employees as well. Luckily, protecting your business from identity theft is easy so long as you know what to look out for and keep up to date with.

Keep on reading to learn more about how you prevent your business from suffering from this unfortunate situation. 

Secure Sensitive Files

There are plenty of sensitive files that a business will need to protect. This includes tax returns, bank statements, and many more.

Keeping essential files in a safe, locked area and shredding the documents are just a couple of ways to ensure identity theft protection. Additionally, you should provide your business with a secure mailbox when receiving important documents.

Invest in Digital Security

When it comes to combating online digital fraud, the best thing to do is to follow the proper digital security practices. One good practice is installing strong firewalls and anti-virus applications as well as using secured wireless networks.

You can also invest in VPNs for outside access and have safe offsite data storage for your business’s vital data. Training your employees with these same practices is critical for keeping your files safe. You should also limit the software they can install on company computers. 

Use an Employer Identification Number

Most corporations and LLCs will already have an employer identification number for their tax identification. However, small business owners might not think to get one for their company.

Getting an employer identification number keeps your personal and business files separate and can help with identity theft protection. You can acquire one from the IRS website, and once you have it, your identity won’t get stolen as easily. 

Monitor Business Expense Reports

Sometimes, you get updates from the government whenever someone tampers with your accounts. However, it’s best to check up on your records yourself. Doing so allows you to track your credit, find suspicious activity, and correct it before anything bad happens.

What is a great way to protect your business from identity theft and manage your accounts? Consider using a business spending management platform like these ramp alternatives. 

How to Protect Yourself From Business Identity Theft

The last thing you want to be worrying about when running a business is ID theft. This is why it’s necessary to keep up to date on the measures you need to take to keep your business protected.

We hope that after reading this article, you have a better idea of how to prevent business identity theft. If you found this article helpful, check out the rest of our site for more like it.