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Dealing with Business Identity Theft

Most of us are now familiar with the concept of "identity theft". This happens when someone gets hold of your personal financial information -- credit cards, bank account information, and so on -- and accesses it pretending to actually be you. The thieves drain your bank accounts and run your credit cards up.

Business identity theft takes this process one step further. The thieves latch onto your critical business information and then pose as an authorized purchaser of goods within your company. Goods and services are purchased in the name of the company and you are left with the bill.

According to this recent article, business identity theft is a growing problem. It is also one for which the victimized business gets little sympathy from banks, credit card companies, and other business services.

Statistics on the extent to which business identity theft is widespread are hard to get a handle on because, for one thing, police consider these cases of "fraud."

Needless to say, a business can be severely damaged if the wrong person gets hold of critical credit and banking information. So guard this information very carefully.