Identity theft doesn’t just wreak havoc on your business finances, credit and reputation; it can cost you a lot of time and money as well. Knowing what it is, how to prevent it, and what to do if you become a victim could save your company’s credit, reputation and bottom line.
What is Business Identity Theft
Just like individuals, businesses can be victims of identity theft. Business identity theft (also known as corporate or company identity theft) occurs when thieves use a company’s information to file a fake tax return, open credit cards, establish a line of credit with a retailer, etc.
Identifying Business Identity Theft
- The IRS rejects your return or request for extension saying it already has one with that identification number.
- Unexpected credit cards, accounts or bills show up on your credit report.
- You receive an IRS notice that doesn’t relate to anything you’ve submitted.
- Regular bills go missing in the mail.
What You Need to Do If Your Company’s Identity is Compromised
If you suspect your company is a victim of identity theft, immediately notify relevant parties (i.e. your bank or credit card company), and file a report with your local police and the Federal Trade Commission.
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