A Risk Management Strategy for Identity Fraud

shutterstock_217857187When analyzing identity theft, it’s noted that over 10 million consumers every year are impacted by this crime. This is extremely costly from businesses at a price of $221 billion a year. While consumers are typically a target, now business owners have a new threat to be concerned about. In addition to staying protected with a New Jersey Business Insurance policy, ensure you have a risk management strategy in place in the event of identity fraud.

To summarize, business identity theft is the newest threat to small business and these criminals will take company identities and try to acquire credit through company names. They will continue to damage a business by preventing them from further acquiring credit.

According to an article in U.S. Small Business Administration, there are a few risk management strategies to prevent and detect identity theft.  

  1. Create a protection plan. Developing businesses must keep a protection plan in mind in regards to growing their company. Design a thorough risk management plan to protect your company’s identity and an action plan in case you do become the targeted victim.
  1. Protect company documents. Make sure to keep all important documents and records in a safe place and use a shredder for any other information. Never provide your company’s federal tax identification number, financials, or bank statements to anyone without initial contact. To protect purchases, use a prepaid business credit card for employees with limits and deactivation options.
  1. Protect information online. If you’re putting out sensitive company information on the web, make sure you’re using a secure site with security certificates up to date.
  1. Monitor business credit reports. Do this by subscribing to monitoring services that give you access to your company’s files 24/7. This is the fastest way to detect a fraud charge.
  1. Avoid the “master” user. The easiest way to gain access to all the company’s information is by creating any type of master user account and password. Avoid this at all costs.

At Vreeland Insurance Inc., we train our team to recognize all types of New Jersey Business Insurance. We understand your needs and have designed our programs to ensure that you get the most for your insurance dollar. We have the expertise to provide you with a variety of coverages and policies catered to your business. For more information, call us today at 877.755.3767.

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