Identity theft isn’t just a personal issue, it affects over 17 million Americans each year, as noted by the Bureau of Justice Statistics. Businesses face similar threats. When a business falls prey to identity thieves, it can result in financial losses and damage to its credit standing.
Unlike individual cases, a business attack can endanger the security of numerous employees and customers who depend on it. To protect your business from identity theft, consider implementing these five strategies.
Consider the Appropriate Online Security Steps
Protecting your business identity starts online. Systems without sufficient security are prime targets for hackers. Initiating security measures with strong passwords and enabling two-factor authentication is essential. For enhanced safety, consider using an authenticator app instead of SMS-based 2FA, as text messages can be vulnerable to SIM swap attacks.
Implement firewalls on your network and deploy antivirus software to detect and prevent device breaches. Employee errors often contribute to business identity theft, making cybersecurity training for your team vital.
Go Paperless with Digital Statements
Mail theft is an easy yet common tactic for individuals seeking to steal a business’s sensitive information. Documents like bank statements, credit card bills, and HR files can be exploited to harm the business or others. To prevent this vulnerability, consider reducing mail reliance.
While going completely paperless might not be feasible for all businesses, shifting your bank and financial statements to digital format is a quick and effective step. Modern technology offers enhanced safety for digital statements compared to paper ones. By updating to digital accounting and statements, you can save both time and money while safeguarding your business against identity theft.
If you go digital you need a MRZ software to help read identity documents. Investing in this software can ensure quick and accurate verification of employee and customer identities, reducing the risk of fraudulent activity.
Hard Drive Destruction and Document Shredding
Protecting against identity theft significantly involves shredding documents and destroying hard drives. With a document shredding service, your office can use secure shred consoles where employees safely discard outdated documents.
Avoid recycling or storing hard drives, as this can expose sensitive company information. Opting for a monthly document shredding and hard drive destruction service ensures that your important documents remain secure.
Strategically Managed User Data Access
Not every employee at your company should have access to all files. Large organizations implement multiple system security layers to ensure that only those who need access to specific data can access it. This approach is equally crucial for small businesses.
Employees must have a unique username and password if your daily operations rely on computer systems. These credentials should never be shared; each account should only have access to necessary systems.
Adhering to this practice allows you to swiftly deactivate accounts when an employee departs, offering precise control to safeguard data from unwanted access. Even if you trust your employees completely, securing your data ensures your protection.
Create a Safe Filing System
If your business needs to maintain paper records, keep them secure. Store any documents that might threaten your business, employees, or customers in a location only accessible to those with a legitimate need.
Typically, a locked filing cabinet or a series of them is sufficient to deter potential data thieves. For documents requiring extra protection, consider placing them in a safe or vault, or keep the locked files in a secured area that needs additional access.
Endnote
Remember that protecting your business from identity theft requires a team effort. It involves staying alert, educating yourself and others, and taking proactive actions. By adopting these strategies, you’re actively working to safeguard your business.