Theft of business identity is a risk just like personal identity theft.

Business owners have to be doubly vigilant against fraud and scams because they must protect themselves against both personal and business identity theft. Personal identity theft gets more coverage in the news, but business identity theft is also a risk. Consider these ways to protect your business assets, credit and reputation. 

Safeguard your EIN

Corporate identity thieves can use an Employer Identification Number (EIN) in similar ways to how a social security number is used for fraud, including illegally accessing bank accounts, opening credit cards, obtaining loans or lines of credit, or claiming tax refunds in your business’ name. If this happens, the victimized business may be left with damaged credit, the stress of dealing with debt collectors and the headache of restoring their reputation.

Do not publish your EIN online. When you share your EIN with a trusted supplier or client:

• Be sure to use a secure wireless network; never share sensitive data over open networks like those in an airport or coffee shop.
• Only enter your EIN on secure sites; look for “https://” at the beginning of the web address which indicates the site is on a secure server. 

Monitor your business credit

Just as many folks monitor their personal credit, businesses can keep tabs on their credit profile. Companies like Dun & Bradstreet, Equifax, Experian and TransUnion offer business credit monitoring.

Watch out for scammers who claim to be with the IRS. Keep in mind that the IRS will never:

• Initiate contact with taxpayers by email, text or social media to request personal or financial information.
• Call taxpayers with threats of lawsuits or arrests.
• Call, email or text to request taxpayer Identity Protection Pins.

Another way to protect your business from financial scams is to sign up for activity notifications from your bank and creditors. For example, with a Consumers business credit card, you can set up credit card controls that will turn your card on or off, block international usage, set spending limits and more.

Raise employee awareness

Make sure your employees understand the risks of business identity theft and know how to protect sensitive business information such as EINs, account numbers and passwords.

Learn more and stay up-to-date on current scams and other relevant information on the IRS website.

Built-in fraud detection

At Consumers, we have systems in place to detect fraud and protect your assets and information. Talk to one of our experienced commercial loan officers to learn more about services tailored for business members.

 

Federally insured by NCUA