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How to Take Action Against Business Identity Theft

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Identity theft is a growing problem in today’s increasingly digital world. Almost one-third of Americans have been victims of identity theft, and more than 300,000 Americans fall victim to phishing, vishing, or smishing attacks every year.

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Identity theft happens when someone steals your personal information, such as your social security number, ID number, credit card number, or other identification information. This stolen information can then be used to open new accounts in your name, make purchases, or access your bank accounts without your permission.

Businesses can be particularly vulnerable to identity theft and suffer serious financial consequences. It can take months or even years to recover from the damage caused by business identity theft, so it is important to take steps to protect your business. In this article, we’ll discuss the action that you, as a business owner, can take against identity theft.

Implement Identity Risk Management Strategies

Identity theft is a growing problem that affects millions of people and businesses each year. As the world becomes more digital, it has become easier for criminals to access personal and business information and use it for their own gain. To combat this, organizations must implement identity risk management strategies to protect their customers from identity theft.

Identity risk management involves identifying potential risks and implementing measures to reduce them. This includes verifying customer identities, monitoring accounts for suspicious activity, and using secure authentication methods such as multi-factor authentication.

Investing in an identity risk management solution is also an important step to protect your business, your employees, and your customers from the threat of identity theft. With a comprehensive identity risk management solution, you can detect all potential threats and make wiser authentication decisions.

Create Stronger Passwords

According to the Federal Trade Commission (FTC), a secure password should be long, complex, and unique. It is easy to create different passwords for each account with the help of a proper password manager. People are strongly encouraged to use unique passwords on every account they create, but unfortunately, this is not always the case when managing passwords.

Hackers are increasingly using brute-force attacks to find passwords. As computers become more powerful, they can test combinations of characters to find the right one. It is important that your company’s password policy requires the use of long, complex passwords to access systems. This is one of the most secure password practices.

Passwords should only be used once to ensure security. If a password was compromised previously, reusing it could create a big problem.

Provide Continuous Cybersecurity Training to Employees

As technology continues to evolve, so do the techniques used by fraudsters to gain access to sensitive information. It’s essential for businesses to stay informed and educated about the latest emerging threats and how they can protect their data.

By staying up to date on the latest trends in cyber security, businesses can better recognize potential threats and take steps to prevent them before they become a problem. Additionally, by educating employees on best practices for protecting personal data, businesses can ensure that their staff is aware of what steps need to be taken to keep their information safe. You should teach them to recognize suspicious emails, attachments, and links and to avoid clicking on them, but also encourage them to report any suspicious activity to management.

Use Secure Networks

Using secure networks is a must for businesses that are looking to prevent unauthorized access. To secure their data, companies are encouraged to use firewalls and encryption. To reduce the risk of data being compromised, it’s important to update your software and operating system.

By taking proactive measures to protect sensitive data, businesses can protect both customers’ and employees’ data.

Protect Your Smartphone and Computer

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You should always make it a priority to protect your business data on your computer or any smartphone you may be using. Use strong passwords and update your firewall, antivirus, and spyware protection software regularly.

Also, steer clear of spyware and only download free software from websites you trust. Install software only after you know what it is.

Shred Personal Documents Before Disposing of Them

Dumpster diving may seem like a dated way to steal business information in the age of online data breaches and scams, but criminals continue to do it.

Keep a few months’ worth of bank and credit card statements, utility bills, and IRS correspondence in a safe and shred the rest.

Final Words

Business identity theft happens when someone steals business information and uses it fraudulently. When this happens to companies, it can not only cost them time and money but also do serious damage to their reputation. Some of the best ways to combat identity theft are to implement identity risk management strategies, learn safe password practices, and use secure networks.

Published: June 14, 2023
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