Business Identify Theft

Posted on Thursday, April 14, 2022

When you hear the words, identity theft, what is the first thing that pops in your head?  Typically, it will be individual identity theft.  Did you know that business identity theft is on the rise? Beware!   

Business identity theft can be defined as “the use or attempted use without authorization of a business name and/or its identity for gain.”   

You may be wondering what can someone really do with a business identity? 

1. Attain goods/services and leave you debt 
2. Secure funding/credit 
3. Change the course of money coming into your business 
4. File tax returns 
5. Tarnish your business brand 

A recent example of business identity theft occurred when an unauthorized individual reactivated a corporate registration and obtained a PPP loan.  There are now liens filed against the business and they are fighting to clear their name. 

Why would a criminal go after a business?  It’s just easier. 

• Businesses tend to have more money and lines of credits than individual consumers. 
• It is just easier to get away with. 
• Businesses tend to deal with high-dollar orders so they are not uncommon.  
• Security and controls may not be utilized by small-to-medium sized businesses. 

 So how can you tell if you are a victim of business identity theft? 

• Unauthorized filings at a Secretary of State office have occurred. 
• Professional licenses have been compromised. 
• Mail indicates that there are newly opened or declined accounts. 
• Vendors call asking for missing payments that you are sure were already made. 
• Bills/lawsuits or collection notices appear. 
• Law enforcement comes knocking and asking questions. 

What can a business do to mitigate the risk?  BE PROACTIVE 

• Monitor your EIN like it’s your social security number. 
• Monitor your business registrations  
• Monitor your credit reports 
• File documents regularly and timely. 

If you have any questions or think you may be a victim of business identity theft, please contact us.  DWD has a team of Certified Fraud Examiners and accountants that can help. 

Contributed By: Jenny Lemmon, CPA, CFE | Senior Manager | DWD CPAs & Advisors

Posted in Tax And Accounting Topics For Business

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.