Recently, there has been a rise in identity theft attacks on business owners. While it used to be that identity thieves went after individuals, the past few years have seen a change in that pattern and now business owners are just as much of a target as individuals.
The same information that can be used to steal an individual’s identity can be used to impersonate a business owner or otherwise compromise their accounts with the goal of getting access to the business’s money.
Steps to take to protect both your business and personal data are:
- Add multi-factor authentication onto all important accounts
- Install encryption software on company computers
- Restrict access to financial information to specific workers
- Use a VPN when connecting to public wi-fi to keep your connection secure
- Never use the same password for a business and a personal account
- Shred documents that contain sensitive information when you’re done with them
- Review financial statements regularly to check for suspicious transactions
- Never give out personal information to someone whose identity you can’t verify
Following these steps can help you keep your information and your business safe. As a reminder, your bank will never ask for your password, social security number or EIN other personal information over text, phone call or email. Phishing attacks (where a scammer impersonates someone to try to gain access to their information) are some of the most common identity theft attempts. Be vigilant to prevent them from working, and guard your information carefully.
Business owners can also be vulnerable to tax fraud schemes where someone submits a fraudulent return to the IRS and claims money the business is eligible for. For that reason, if you ever receive paperwork from the IRS that you don’t understand or that is incorrect, don’t just ignore it. Reach out to the IRS or your tax professional to make sure you understand all communications and verify that they are accurate.
While nothing can fully protect you from identity thieves, these steps can help keep you and your business safe.