Business ID Theft Scams
What are they ? Business identity theft is the impersonation of a business , owner or employees of a business .
How common are they ? According to the FTC , there were over 43,000 reports in 2019 categorized as business or personal loan identity theft . Business identity theft is on the rise due to businesses often having larger bank account balances , bigger credit limits than individuals , and having the ability to make larger purchases with less scrutiny , among other things .
How do you recognize them ? Sometimes it can be difficult to tell if your business ’ identity has been stolen . Here are some of the signs to keep an eye out for :
• Suspicious charges on your business bank account
• Communications from clients about transactions you have no memory of
What do you do if you have been a victim of a business identity theft scam ?
If you find your business ’ identity has been used , you should check all your important business accounts and bank statements for fraudulent activity . Review your credit reports and speak to the fraud prevention department at all credit reporting agencies . Compare the Employer Identification Number ( EIN ) of the fraudulent “ business ” to ensure it hasn ’ t used the EIN of your business . If you find any discrepancies , report them to each credit agency — Dun & Bradstreet , Equifax , Experian and TransUnion . Also , consider filing a statement of correction with the Texas Secretary of State . Be thorough , because the theft of your business ’ identity can have serious implications .
Where should you report it ? You should report the scam to the Federal Trade Commission ( FTC ) online at IdentityTheft . gov . Additionally , consider contacting the investigations bureau for the state where the business identity theft occurred .
• Communications about accounts you ’ ve never opened , or letters from the IRS about your business ’ tax filings
If you are getting scammed by someone who has stolen another business ’ identity , here are some of the signs :
• Sensitive information requested by a business you work with . Often , these communications will look like they came from someone you know at that company
• Letters sent from a business about services you have not used
• A business requesting you transfer payments in a new way or to an account you are unfamiliar with
Source : https :// www . ftc . gov / system / files / documents / reports / consumer-sentine-network-data-book-2019 / consumer _ sentinel _ network _ data _ book _ 2019 . pdfvizhome / FraudReports / TrendsOverTime
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