Usually, big corporations are considered to be the primary targets for hackers and identity thieves. However, today any enterprise may fall prey to them. When you think about it, sophisticated cyber attacks come to mind. Yet, for the most part, scammers use low-tech solutions to get the information they want.
Essentially, setting up a business is not as difficult as it may seem. However, many entrepreneurs neglect certain details; the consequences of this mistake may result in losing the whole business together with a reputation. Many people have heard about personal identity thefts; some even know how to protect themselves from it. At the same time, even entrepreneurs know little about business identity thefts, and scammers benefit from it.
What scheme is usually used by identity thieves?
Filing annual report is a must for any incorporated company, and this information is used to keep track of the condition of the business. Non-compliance of this rule leads to the “administrative dissolution,” and the company can be fined for the absence of registration. Also, the company will have no possibility to receive appropriate legal protection.
For the most part, such enterprises appear in the state lists of inactive companies, and that’s where scammers begin their work. Using different emails, they reinstate the company and thus, receive a certificate that claims that the business is workable. Hence, banks are very unlikely to refuse opening up a credit line.
Another way of gaining profit for scammers is to order something that they can resell. And all this happens without owner’s knowing. The debts made by scammers appear to be quite an unpleasant surprise to the entrepreneur who thought that their business was doing just fine.
The incorrect company shut down provides great opportunities to the criminals that make a point of creating debts and stealing a business identity.
Simple but efficient ways to protect your business
1. Keep track of the filing annual report deadline and always meet it. This point seems to be However, you will be surprised to discover how many business owners failed to do so because they have simply forgotten about the date of the report (it correlates with the date of the company foundation). Entrust the reminding to the registered agent or your lawyer to make sure that you will do everything in time.
2. Close down your business properly. Gather all necessary documents and get through the required procedures. Otherwise, incompletely dissolved business may play a low-down trick with your bank account.
3. Formalize withdrawal from the states correctly. If your company doesn’t work in certain state anymore, then it is necessary to document it. As a result, the company will do business in all regions except the one you do not involve in your network. Do not give scammers any chance to use these documental gaps to their advantage.
4. Analyze your business credit checks. Look through them to rest assured that no one else had used it to their benefit.
5. Get acquainted with the information provided by BusinessIDTheft.org. It’s a perfect place to find more information on the issue. Its team of professionals does their best to struggle against corporate identity thefts.
6. Constant vigilance. Keep in mind that scammers would rather prefer weak targets over the one that is always wide awake. Remember about all forms that must be filed, cooperate with your lawyer or register agent, and identity thieves will stay away from you.