By Sandra Guile
Better Business Bureau
According to the National Institute of Standards and Technology, only 28 percent of small businesses provide training to employees about internet safety and security. Because of that perceived lack of security, staff, customers, and even vendors who have trusted a business with their personal information are at risk. The Federal Trade Commission estimates nine million Americans have their identities stolen each year.
Businesses can be scammed with a seemingly innocuous phone call with the caller claiming to verify information. Sometimes it’s a phishing email that gets clicked on without being read. Or, in the worst-case scenario, a quiet hack from an outside source, such as the IRS breach that happened in February. According to Fortune Magazine, in this instance, approximately 464,000 unique SSNs were compromised and more than 100,000 of them were successfully used in tax identity fraud. This is the second year in a row the IRS has been hacked.
It’s getting harder and harder for businesses to tell the difference between a fraudster and a vendor or a customer. Scammers will pass themselves off as “vendors” following up on an advertising invoice or an overdue utility bill to bully the Accounts Payable department into paying a phony fee. Some fraudsters will even pretend to represent a government entity and request personal information about an employee or employees.
Thieves are getting better at masking their intent by using phone, email, or other sources to commit their crimes.
Once the theft happens, how does a business recover from it before a lot of money is lost in a matter of days? A small business can:
Assess exactly how the scam occurred. Track down the parties involved and gather up the facts so local authorities can be contacted and a report filed.
Contact creditors and banks to freeze accounts if they are affected. Then, check all social media accounts to be sure they haven’t been impacted.
Consult legal counsel and develop a plan to contact customers if there is a breach of data. Then, develop a plan to reduce future losses for the business and protect customer information.
Take action and be prepared to follow up with customers and vendors. Get employees involved and on board with a fraud prevention program. While key personnel will need to be trained in handling sensitive information, it’s important everyone is aware of what to look for in a potential breach.
Review the company’s fraud prevention program annually.
Protecting customer information, accounting data, and monitoring your online presence is important not just for your business, but also in maintaining a trusting relationship between buyers and sellers in the marketplace. The Federal Trade Commission has resources you can use to prevent and recover from identity theft. BBB has cybersecurity tips available as well.
Sandra Guile is the Community Outreach Specialist for BBB. She promotes BBB’s message of marketplace ethics through public speaking engagements, presentations, media relations, press releases, web content, and other written materials.
Tune in Tuesdays at 10:30 a.m. with Scott Sloan on 700WLW for The Scam of the Week and every third Thursday with Brian Thomas on 55KRC. Contact Sandra at (513) 639-9126 or sguile@cincinnati.bbb.org. Your BBB is located at 1 East 4th Street Suite 600 Cincinnati, Ohio 45202 – to reach the office, call (513) 421-3015.