Corporate identity theft entails acquiring or stealing information about a company and fraudulently utilising it for financial advantage. It is a sort of fraud in which a criminal steals a company’s identity and uses it to purchase goods and services by opening credit accounts with banks.
Businesses are frequently attacked for the reason that you can`t stop or possibly predict, such as:
- Bank account balances are larger.
- Their credit limits are higher.
- Making substantial payments regularly is not suspicious.
- Information is frequently made available for free on their website or over the internet.
Sensitive data may also be used against companies, with third parties focusing on employees rather than clients. There are chances where the whole business can be targeted. Looking at the past to see if different firms exposed themselves to identity theft will allow businesses in the future to avoid such incidents. You may also be able to prevent your company from a potentially harmful situation.
Case Study:
130 million credit card numbers were stolen from three companies' data banks in 2009:
The largest scale of identity theft since the records began was that of Heartland Payment Systems, Hannaford Brothers Company, and 7-Eleven Incorporated case. They were robbed by three men who, hacked into their computer-stored data, after diligently analysing each corporation's security, and later retrieved the data. They sold the credit card numbers online, and the customers would use the details to make any purchases they needed.
Hence, it is vital for you to maintain vigilance. When a dilemma like this arises, it must be addressed as soon as possible. We recommend you keep an eye out for problems like this so that they can be instantly minimized.
Store data that you actively use. Anything that is not entirely required should be disposed of. Keeping as little data as possible reduces the stakes and puts fewer at risk.
It is not necessary that corporate identity fraud can occur due to external machinations only, the fraudulent can easily be caused by some internal elements as well. You owe it to your clients to secure their records, not only from outside attackers but also from your employees and business associates. You must also shield corporate data from other clients and employee data from other employees. Allow as few people as possible to have access to it and do not deceive your clients for anything. The more irrelevant data you leave around and the more people you trust with sensitive information, the more likely it is that the data will be used against you, your employers, or your staff.
How to protect your business from identity theft?
What is PROOF (protected online filing) system and how can it help me in preventing unauthorised alterations to my firm?
This free tool allows you to secure your business against unauthorised alterations to its records. It prohibits the submission of some paper forms that include changes made to:
- your registered office address
- your officers (personal details, appointments, and resignations)
- your company name
- the name of your company by special resolution
Your company's records must be reliable since they may be used to verify your company's legitimacy if you request a loan. Every month Companies House deals with around 50-100 corporate identity theft cases. However, you can use the Companies House online filing service to join PROOF.
To file electronically, you must first register.
After you have logged in, go through the following steps:
- At the top of the overview screen, click the ‘Join PROOF' link beside the padlock icon.
- The mentioned terms and conditions must be agreed upon by.
- And then select ‘Protect this company’.
If your application is accepted, you will be notified by email.
Once you have joined, the PROOF-related forms can only be filed online, so:
- inform the people who file paperwork for your firm, that you have decided to switch to PROOF.
- offer them the authentication codes that they will need to complete their paperwork online.
Paper versions of the forms will be rejected by Companies House and returned to the registered office address.
You can unsubscribe from the PROOF service at any time.
How do I check whether I am registered for PROOF?
The PROOF status of your organisation is presented on its online overview screen.
- If the padlock symbol is locked, you are registered for PROOF.
- If the padlock symbol is unlocked, then you are not registered for PROOF.
- If there is a clock icon, your program is running.
If you register a change of business name by special resolution on paper after June 1, 2021, you must additionally file a paper permission form.
The annual return was replaced by the confirmation statement in June 2016. These forms are not covered by the PROOF scheme. All other documents are acceptable on paper if supplied by a PROOF scheme firm. If you need to submit one of the PROOF-covered documents on paper while you are still enrolled for PROOF, you must fill out a paper permission form. Use a printed consent form only if necessary.
For more information, please see the PROOF terms and conditions and to get a hardcopy consent form, contact the Companies House contact center at 0303 1234 500. If you believe a corporation is engaging in fraudulent behavior, you should report it to Companies House.
