What is Corporate Identity Theft?
Wouldn't it be nice if
corporate identity thieves left a ransom note or some type of trail? Unfortunately, these malicious hijackers move
in extreme stealth mode, allowing them to hack into a number of systems without
a user becoming aware until it is much too late.
If you happen to be one
of the naive who believes this could never happen to you, we strongly suggest
that you rethink the situation. Thanks
to the amazing technology that introduced us to the World Wide Web and Wi-Fi
connections, corporate identity theft is on the rise, literally costing many
companies a fortune.
Understanding corporate identity theft
Corporate identity theft
is composed of a deadly combination: a world that has gone mad for wireless
activity and the very computer that makes way for a connection into virtual
reality. The two allow information to be shared all across the world. This combination can be viewed as the
essential element for success and the precursor for disaster all at the same time. In the end, many hackers have proved that it
doesn't take a rocket scientist nor a criminal mastermind to spot and take
advantage of the many opportunities at corporate identity theft and fraud.
Corporate identity theft
has the impact to leave a once prominent business crippled with negative
consequences. One reason this type of
identity theft is so damaging is because the crime is fairly easy to
commit. By submitting documents to a
corporate registration service, such as the U.K.'s Companies House, thieves can
get away with the following:
• changing the registered address of a
business (form 287)
• changing the director or secretary of
a company (form 288c)
• appointing new directors of their
choosing (form 288c)
After the
forms have been submitted, corporate identity theft becomes very difficult to
rectify as the Companies House will fail to notify the original directors or
secretaries that new forms have been submitted.
They also will not check the forms over for signs of validity. Once the forms have been filed, the new
directors and secretaries can easily open new bank accounts, order products to
be shipped to a new address, and completely ruin a corporation's credit ratings,
while leaving behind major fees that must be paid. The fact that hackers can easily access these
tools for dirt cheap makes for a nightmarish scenario.
Defending
Your Corporation
Carefully
manage your data - With the vast amount of information available on the
internet these days, it doesn't take a hacker much at all to commit serious
crimes such as corporate identity theft.
It is a must that you find out exactly what information regarding your
business is online and where it can be located.
Risk
management - It is very important to implement a system designed to prevent
and manage such a security breach. Make
sure your staff and other members of the company are well aware of all risks
that exist.
Do not
panic - One of the worst things you can do in a case of corporate identity
theft is panic and make a series of moves on fear and impulse. In a worse case scenario, you should
immediately contact your lawyer and the local authorities. This will ensure you that insurance claims
and potential investigations are not compromised.
Preparation
- Last but not least, you should be prepared to fight for your
corporation. Keep your documents
organized as lack of ownership and physical evidence can make your case
difficult to prove.
