While many might believe that identity theft is limited to individuals, the truth is that criminals are increasingly targeting Alabama small businesses. Most often, business identity theft is used to illegally obtain cash, credit, and loans.
In order to steal the identity of your Alabama business, criminals often seek access to company information, such as the tax identification number (TIN) or the owners’ personal information. Once they have this information, they are able to open up lines of credit or obtain business loans based on the business’ identity and credit record.
Business identity theft poses serious risks because it often leaves behind a path of destruction in the form of unauthorized debts, damaged credit, and a destroyed reputation. That’s why it’s important to know how to protect your Alabama business.
Below are several tips to ensure that your business identity is not the victim of identity theft:
- Update your business filings as soon as any of your business contact information changes and check your business’ filings with the Secretary of State’s office at least once a year.
- Immediately notify your local law enforcement authorities of any unauthorized changes and update your Secretary of State business filings with the correct information.
- Regularly monitor your business’ credit profile:
- Protect your sensitive company information as carefully as your sensitive personal information.
- Secure paper and electronic documents in locked cabinets and password-protected files.
- Establish company data security policies and limiting employee access to sensitive company and client information and assets.
- Don’t transmit sensitive information, such as bank account information, via email or public websites.
- Shred business records before putting them in the recycling bin.
- Don’t include sensitive personal or business information in public filings.
- Obtain business insurance coverage that covers any potential business identity theft losses.
Source: California Secretary of State
Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.
In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.
To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.
