As if the pandemic isn’t causing enough stress and anxiety for business owners, there’s another growing threat to worry about: business identity theft. KrebsOnSecurity, a leading security news source, recently warned of a “particularly aggressive business ID theft ring that’s spent years targeting small businesses across the country.” Even businesses that have slowed down operations due to the current climate are finding themselves targeted by this gang of thieves.
It’s not the first time alarms have been raised, either. A report by the National Cybersecurity Society (NCSS) identified four main types of business identity theft:
- Financial fraud: Obtaining new lines of credit, loans or credit cards; placing fraudulent UCC filings in the name of the business.
- Tax fraud: Filing fraudulent returns in the business name using tax subsidies or obtaining refunds from federal and state governments.