Digital identity theft is becoming an issue of concern in an age when technology is continually advancing, especially when businesses fail to implement security measures. Aside from the detrimental impact that fraud and cybersecurity attacks can have on a company’s reputation, they can also substantially influence processes and operations.
As large-scale businesses implement concrete fraud prevention solutions, the latest attacks typically target businesses lacking security measures. Generally, entrepreneurs and businesses with only a few employees often lack the resources to integrate security measures. Always remember that it’s crucial to keep all your business, employee, and client data secure. When data loss or fraudulent activity occurs, it can be a costly and time-consuming ordeal.
Make it a priority to protect your business from digital cybersecurity threats by checking out reliable fraud protection and management services providers. Doing so would be a good starting point to protect your business.
If you want to keep your business safe from potential identity theft, here are several practices worth considering to protect your business’s digital identity.
Maintain Control Over Accessibility
As part of the security measures to protect your business’s digital identity, it’s crucial to maintain control over who can access your system and data. Thus, make the most out of passwords or limit employee access to only certain documents. Implement a straightforward protocol in case a data breach occurs, especially the actions to take.
It’s also a best practice to encourage updating passwords at least once a quarter. This approach will make it hard for hackers to access your data. When creating a password, it should be unique. Ideally, it must be a combination of upper-case and lower-case letters along with special characters and numbers.
Consider Multi-Factor Authentication (MFA) for your sensitive data if you want a better level of security. Aside from the username and password during login, you need to enter a code sent to your email or mobile device. The extra layer of protection will make it hard for hackers to access your accounts.
Obtain An Employer Identification Number (EIN)
Although a corporation should have a separate employer identification number (EIN) for tax identification purposes, a small or medium business owner may operate as a sole proprietorship using a Social Security number.
If you’re a sole proprietor, it might be best to operate your business with an EIN which you can obtain via the Internal Revenue Service (IRS) website.
Make it a priority to separate your business and personal finances due to several reasons, including identify theft prevention. This approach helps protect business owners. If your business ends up as a victim of identity theft, it won’t have a link to your identity.
One way to keep your finances separate is to apply for a business credit card once you obtain an EIN to conveniently track your finances and allow you to detect fraudulent activity more quickly.
Secure Devices In The Workplace
When your employees use their mobile phones and devices at work, it increases the risk to your business. All devices in the workplace should have password protection to prevent access to sensitive business data if a device is stolen or lost.
There’s an even higher risk for fraud when mobile payment solutions are part of the daily operations. Business owners should take the necessary measures to protect their account credentials. Once fraudsters gain access to the account, they can easily divert money from legitimate transactions to another account.
If you’re planning on utilizing a mobile payment system or there’s already one in place, consider getting the best encryption methods and devices that need the highest level of authentication.
Keep Online And Offline Files Secure
Businesses of all sizes typically deal with paper files ranging from tax returns, bank statements, and client lists that hold sensitive information. When managing your physical files, you must employ safety procedures. These steps include shredding documents, utilizing a secure mailbox, or keeping essential data in a protected location to minimize the threat of fraud.
When it comes to your online data, ensure that your computers have a secure firewall, as well as antivirus and anti-malware software. This can significantly lower the risk of online digital theft or fraud.
Don’t forget to inquire about the security measures in place by your internet service provider to protect your data. Also, determine which third-party security suppliers they use and how frequently their solutions are updated.
Check Your Statements Regularly
One of the ways to prevent fraud before it gets out of hand is to check your accounts regularly. If you find any suspicious activity in your accounts, such as charges you don’t recognize or withdrawals you didn’t make, you can take immediate action.
Don’t forget to carefully review your banking and insurance agreements to determine whether your business accounts are secure against possible fraud.
As cases of online fraud and other forms of cybersecurity threats continue to rise, keeping your business’s digital identity safe should be a priority. An unchecked fraudulent activity or data breach can put your business on the sidelines while negatively harming credibility and reputation. Luckily, you can safeguard your business from these potential threats by taking into consideration these practices. Make the right choice and implement security measures to keep your business safe at all times.