Understanding Identity Theft Risks in Your Business
By Clint M. Waite
Identity theft, the new-age method of thievery, is one of the fastest growing white-collar crimes affecting individuals and businesses today. The most common tools used to rob your identity include:
- Lost or stolen documents (Wallets, checkbooks, or credit cards are the prime targets.)
- Employee theft (Employees accessing paper, online or phone records.)
- Mailbox theft (Stealing mail directly from a mailbox allows the perpetrator to redirect mail to a new address.)
- Associated businesses (Stealing confidential information by a company that handles your financial data.)
- Computer viruses, spyware or hackers (Using automated tools to access confidential information.)
- Phishing (Acquiring sensitive information such as usernames or passwords by masquerading as a trustworthy source.)
- Forged applications (Falsifying an application to temporarily receive free services.)
- Dumpster Diving (Sifting through commercial or residential trash for confidential information.)
- Social engineering (Obtaining confidential information by manipulating users such as customer service representatives or customers to set up new accounts.)
Thieves are tapping into business information from the electronic and print billing process to steal from your customers. Protecting your business through best practices in your billing process will ensure the safety and security of your business financial information.
- You can protect your business by developing a written program that provides policies and procedures to:
- Identify relevant patterns, practices, and specific forms of activity that are "red flags" signaling possible identity theft and incorporate those red flags into the written program.
- Detect red flags that have been incorporated into the written program.
- Respond appropriately to any red flags that are detected to prevent and mitigate identity theft.
- Ensure the written program is updated periodically to reflect changes in risks from identity theft.