Businesses today are familiar with standard cybersecurity protocols around passwords, the importance of secure data sharing, and more. However, identity theft and fraud remain common problems for businesses across all industries. Identity theft is a criminal act in which the identity of a person or business is illegally presumed for the purpose of fraudulent activities and illicit financial gain. If the stolen identity is adopted and used, this amounts to identity fraud. In 2018, Cifas (the national fraud prevention service) recorded just under 190,000 cases of identity fraud, an unprecedented number and a record in the UK. Today, fraud continues to increase as cybercriminals constantly find new ways to carry out their illegal activities.
What can you do to keep your business safe?
Far from being a problem just for the individual, large companies are also at greater risk of being targeted by identity thieves. Many large organizations have large bank accounts, high credit limits, and regularly transfer large amounts of money, allowing cybercriminals to hide their illegal activities in their daily activities. You'd think the latest GDPR revision would turn back cybercriminals and lessen the scope of details available online, and it is, but it's certainly gotten easier in recent years for identity thieves, too. '' obtain information about the company. Information about organizations and their employees is readily available on company websites, sites like Companies House, and social media platforms like LinkedIn. These are the first places cybercriminals go to look. For example, through Companies House, scammers can present false documents to illegally trade under your company's name and reputation. Company credit card or bank account details could also be stolen and sold on the online black market, known as the "Dark Web." And once the information gets into the wrong hands, cybercriminals can cause an irreparable amount of damage before it even detects that the details have been stolen. In addition, scammers may attempt to distribute legitimate-seeming phishing emails to employees, in order to gain access to company information such as bank details or sensitive announcements that, if released early, could affect the value of inventory. It's also not uncommon for virus-ridden emails to accidentally circulate in the workplace. With this type of malware, hackers can gain access to your company's internal systems and once installed, it can be difficult to oust them. Corporate identity theft, therefore, can have negative consequences for your business. If you are a victim of identity theft, your business finances, confidential information, and reputation could be at risk, and depending on the severity of the crime and financial loss, you could be irreparably damaged.
It's better to prevent than to cure
Identity theft can often lead to catastrophic financial losses that could cripple your business. As such, all businesses should purchase cyber insurance regardless of their size, size, or industry. No industry is immune from this type of cybercrime, but cyber insurance can cover it and help protect your business. It should be noted that financial losses that arise directly from a fraudulent act are often not covered by a standard cyber insurance policy, so it's important to check how inclusive your plan is. Fortunately, there are many cyber insurance companies that offer fraud and financial crime coverage in addition to your basic policy. However, while cyber insurance is a worthwhile investment, it is better to be safe than sorry. The chances of being breached are much lower if the correct processes and software are implemented within your organization. Therefore, investing in up-to-date cybersecurity solutions is also of paramount importance to prevent identity theft and fraud. Critical examples of measures that could help prevent identity theft include encrypting employee data, installing firewalls, automatic system updates, and using strong total security solutions. endpoints (more than just antivirus software). It is also essential to educate staff on the importance of not disclosing sensitive data to unauthorized third parties. Remember, time and time again, people have been shown to be the weak link in corporate security chains. In most cases, this is due to careless mistakes rather than malicious actions, so it is essential to teach employees what to look out for and what to do if they suspect a communication may be suspicious. It is also advisable to partner with a trusted IT consultant or specialist, without compromising on cyber security. This specialist should help you identify cybersecurity issues or threats, whether due to a lack of processes, poor compliance, inadequate staff training, or an inability to make the best use of advanced technologies, and then work with you to resolve the issues that have been raised. identified. They must also be able to offer ongoing advice and have access to a wide range of technology solutions to ensure your business is protected from every angle. Richard Menear is CEO of Burning Tree