7 Tips from Network Computers Pros to Help Your Small Business Protect Its Identity

Much of the information a criminal would need to open a credit card under your small business name is easily found online.

US Census Bureau data tells us that 99.7% of US employer firms are small businesses, accounting for 64 percent of net new private-sector jobs. And the largest amount of the nation’s money flows through small business accounts.

It’s why cybercriminals have turned small business identity theft into a big business. We hear about enterprise companies and data breaches – which are serious – but we don’t often hear much about the damage done to small businesses because of identity theft. Here are seven tips, but first, let’s look at why small businesses make such easy targets.

Accessible Information

 

Small businesses – especially if they are incorporated or an LLC – make easy targets for cybercriminals. Much of the information is publicly available. It’s simple for someone interested in stealing a small business identity to find even critical tax information like EINs. The more information a hacker can find, the easier it gets to fish out the rest.

Why go after a small business instead of individuals? It’s where the money is. Cybercriminals want small business credentials for the reasons why these companies incorporate or form LLCs. A business can get credit cards and access to loans with higher limits than these financial institutions offer an individual.

While financial institutions continue to make it more difficult, the process remains relatively easy for a cyber-criminal.

• They find out the name of your company’s corporate officers.
• They request the company’s EIN from a variety of sources.
• Using this and other information available from public sources or human engineering, they open a business credit card account in the company’s name.

By the time a company discovers the unauthorized account opening, the cybercriminal has already maxed out the credit line ordering merchandise with high resale values. The small business is left with the bill and a ding to its credit rating.

Even worse, fewer business credit cards offer the security of stop-loss protection. It’s a common feature for consumer credit cards issued to individuals.

Plus, it’s easy for someone with the appropriate company information to update company information with the secretary of state website to change officer names, addresses, and the company’s registered agent. This allows them to get a certificate of good standing, which can easily facilitate access to even more of your company’s banking and credit information.

A Watchful Eye

In addition to the above steps that largely take care of publicly-available information, it’s essential to protect your protected, sensitive data – including data about your customers – plus your machines and networks from more sophisticated cyber attacks. Malware (including ransomware) or phishing attacks are launched at smaller businesses at an increasing rate. In fact, 61% of small to medium-sized businesses were hit with some form of a breach last year, and the SEC declared that smaller businesses are now the main target for cybercriminals.

Fortunately, proper cybersecurity measures can drastically lower the possibility of a successful attack. Perimeter defense solutions, including a robust firewall, regularly updated anti-malware programs, and employee training that prevents phishing attacks, can go a long way toward protecting your company. A quality outsourced IT managed services provider can help you implement and maintain a defense plan that works.

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