Identity theft is growing at an alarming rate, with criminals using increasingly sophisticated techniques to obtain personal data. And the dangers aren’t limited to individuals or large corporations either. Business identity theft is also on the rise, with small businesses being particularly vulnerable.
Many small business owners don’t consider identity theft, believing they’re too small for criminals to bother with. In fact, they’re a prime target, as they generally have a good credit rating, with a large credit limit available and, in the case of small businesses or solo entrepreneurs, their personal and business finances may be linked. They also have many resources of value to criminal gangs, such as computer networks, paper data or simply their name and address.
The Consequences of Business Identity Theft
Identity theft for businesses has much greater consequences than individual identity theft, because it affects your business, suppliers, employees and customers. Unlike personal identity theft, your bank and creditors are under no obligation to cover any losses, yet losses affect your personal finances too. It could destroy your personal credit and finances, have implications for your taxes, and leave you with debt, legal liabilities and loss of personal income. Records show that 60% of businesses who suffer from identity theft never recover their losses and may end up closing within a year.
Looking After Your Personal Data
With identity theft, the old adage rings true: prevention is better than cure. To prevent it, you need to follow two basic guidelines. Firstly, you must ensure the personal data belonging to your company, your customers, and other businesses with whom you work, is protected. Secondly, that your computer networks and other information systems aren’t open targets for criminals.
Here are some of the basic security measures you need to consider:
- Paper Data: All businesses will have paper records of some description, including data concerning their finances and employees, and customer records. These records must be securely locked away, with limited access. In addition, all records you no longer require must be shredded. Simply throwing them in the bin is an open invitation to criminals.
- Computer Networks: It’s imperative that your computer network is password protected, and access to any sensitive data is given on a need-to-know basis, with additional password levels as required. Ensure your passwords are as strong as possible – random, complex, at least 10 characters long – and changed frequently. And ensure you have adequate protection with your firewall.
- External Hard Drives: Hard drives are a popular way of backing up and transporting documents and data. They’re also small, light and an easy target for thieves. If you use external hard drives, always ensure the data on them is adequately encrypted, so if they are lost or stolen, you’re not exposing your business to danger.
- Mobile Devices: Smartphones, tablets and wifi enabled laptops are all used for company business, but with mobile devices used to store confidential business data and access your main network, they present a huge security concern. Ensure they have security software, sensitive data is encrypted and access is password protected. Also, ensure that all data is wiped when you dispose of them.
It’s vital for small businesses to acknowledge the dangers concerning identity theft, and to ensure that basic security measures are implemented. By following the simple guidelines outlined above, you will give your business an excellent foundation for identity theft prevention.
A properly accredited shredding company will supply you with a lockable container to keep in your office, which can be filled up with any data that you wish to dispose of. They can then come and collect this regularly and destroy it. This sort of on-site shredding service is a simple solution for small businesses.
