Originally published by Jeffrey Zander in the Nashville Post

Many people have experienced personal identity theft. According to a recent study by Javelin Strategy & Research, more than 16.7 million people suffered identity fraud in 2017 alone. In recent years, business identity theft has reached similarly frightening levels. The IRS reported 4,000 cases of business identity theft in 2016, for which estimated damages were $268 million. That number soared to more than 10,000 in 2017.

Business identity theft occurs when cyber thieves commandeer business accounts and credit by using information like employer identification numbers and state registration records, which are both available to the public. Unfortunately, according to 2017 Verizon report, more than 61 percent of data breaches that occurred in 2016 affected small and midsized businesses. To make things even more difficult, the law does not require banks and creditors to cover these types of losses.

A simple way to begin protecting your company is to stay on top of business filings with the Secretary of State. Notify local law enforcement authorities of any unauthorized activity and always get certified copies of fraudulently filed documents, as these may be used as evidence in court. Monitor your business’ credit profile and keep sensitive paperwork in locked cabinets. If you do not already do so, consider using a password protection system for sensitive files being stored online.

Business owners can also take more obvious steps to prevent identity theft, such as refraining from sharing account information via email and shredding or destroying business records before disposing of them. Finally, all business owners should consider business identity theft insurance.

A number of entities offer a variety of comprehensive programs to safeguard companies’ most valuable assets. Through surveillance and monitoring services, these organizations can track the trading and selling of business-related information and alert you when you may be at risk. If your business were to become a victim, some companies even offer unlimited recovery services to help you get back on your feet in the shortest amount of time possible.

It is also beneficial for business owners to protect their company against cyber breaches. Because these types of theft are not 100 percent preventable, it is best to be prepared for the worst. Many insurance programs will assist in limiting damage, delivering legally mandated notifications to your affected customers and helping protect against costly lawsuits.

Finally, business owners should consider a group ID theft protection plan. If your business’s identity were to be stolen, your employees would be nine times as likely as an average citizen to become victims of personal identity theft. You can help protect your team against the stress, anxiety and loss of productivity this type of activity causes.

Last year, the IRS issued a warning to employers and small business owners alerting them to the growing threat of business identity theft – and for good reason. Just last years, more than 500 million Starwood hotel customers’ personal data was accessed by cyber thieves. Marriott released a statement saying that up to 327 million customers’ stolen data included some combination of name, address, phone number, email, passport number, date of birth, and more. Some included payment card numbers and expiration dates. To make matters worse, this information may be retained and used over many years by cyber thieves.

Don’t become a statistic – protect yourself and your company today.