What Is Business Identity Theft?

Identity thieves don’t just target people – they prey on businesses, too. Their schemes vary widely, from the unimaginably complex to the absurdly simple. But in every case, their effects can be devastating to the business involved and its personnel.

Business identity theft is when criminals hijack a business’s name to plunder its assets, credit and/or reputation. The crime comes in a variety of forms, from scammers merely impersonating a business to fraudsters filing fraudulent paperwork to take over a company. However it’s done, the goal is always the same: To exploit the business for the criminal’s financial gain. That can mean purchasing luxury cars or dozens of cell phones on company credit and selling them for a quick profit. It can mean seizing company assets, like a piece of property stashed in a holding company, and transferring it to another business entity, where it’s sold to an unsuspecting third party. Or it can be masquerading as your business to exploit your good reputation and defrauding your current or potential customers.

Will The State Secretary of State Protect My Business?

No, there are many vulnerabilities on the state site. Once you register your critical data, it becomes a public record and anyone can see it. They can easily change your information, including your manager in seconds because the state requires no confirmation that the person changing your information was authorized by you to do so. The notice the State sends you will not alert you of the exact change, which gives cybercriminals unique abilities to file fraudulent paperwork about your business in order to hijack it, including all its assets. According to the National Association of Secretaries of State (NASS), 83% of U.S. states do not even report Business Identity Theft.