Identity thieves have become more and more creative as consumers have become increasingly vigilant about protecting themselves. Instead of going after those who have taken steps to secure themselves, therefore making it harder for criminals to target them, ID thieves are now looking for new targets. Business identity theft, also referred to as commercial or corporate identity theft, is a relatively new type of ID theft crime and as such, is lesser known. It is a serious problem though, especially for those businesses that have fallen prey to it.

How is this new crime committed then? Thieves usually hijack your business identity and use it to create new lines of credit with retailers or banks. These credit lines are usually much higher than personal credit lines. The thieves then use those accounts to make large purchases. The thieves may even siphon funds from your existing bank accounts to dummy accounts they own. This is especially detrimental to startups because your cash flow will be affected. You may be unable to pay your contractors and suppliers. They, in turn, will stop providing you with their goods and services and you will lose your clients in the process. This whole situation can lead to bankruptcy for your business. You will end up having to spend more time and money in trying to get your business back on its feet.

Prevent identity theft from derailing your business

As business owners, your goal is simple – defend your business identity against thieves. Keep in mind though that there is no absolute method to ensure your business stays identity theft-free so you still have to be prepared in the event your business is affected.

Here are some helpful business id theft and privacy protection tips:

• Create a strategic and well-organized plan – Your overall business plan is crucial for maintaining the operation of your business. In case your cash flow is depleted by thieves, make sure you have a Plan B in place with either your suppliers or your bank.
  
  
• Secure your business information and records – Identity theft can be a high-tech, online crime, especially if you're doing business on the web. However, there are some simple offline strategies that can also put your business at risk for theft. An employee losing his company credit card, intercepted financial documents and improper disposal of documents can compromise your business. Advice your staff to keep current documents under locks and key and older documents should be shredded before they are discarded.
  
  
• Online protection – Don't share your company's confidential information or scanned records to unauthorized individuals. If you will be sharing these documents to other organizations you want to do business with, make sure the company's website is secure.
  
  
• Business monitoring – Keep a close watch on your company's accounts. Make sure you do monthly audits with your staff to ensure that any activities they do on behalf of the company are secure.