In 2021, Americans lost approximately $5.8 billion from identity theft. There were 2.8 million consumer identity theft incidents reported, which means there could have been much more. Of that, $2.3 billion were from imposter scams, and $392 million were from consumer online shopping. For businesses, 47 percent of all businesses had one form or another of fraud affect them. According to the FBI, in 2020, scams cost U.S. businesses over $1.8 billion. And since 2020, fraud cases are up by over 70 percent.
If you’re not alarmed by this info, you should be.
The hard truth is that even though many companies you deal with will try to keep your personal and business information private and inaccessible to these criminals, it ultimately comes down to you being fully aware of the various types of identity theft there are, and most importantly, how to prevent it from happening. If you take the stance that this is someone else’s responsibility, you’re placing yourself and your business at high risk simply by having the wrong attitude!
So, here is some great info that you can take action on for both your business and personal protection:
Related: How to Prevent Identity Theft in Today’s Digital World
The below definitions come straight from the Bureau of Justice Statistics website: The definition of personal identity theft includes three general types of incidents:
The definition of business identity theft (also known as corporate identity theft) is:
In that broad description of business fraud, it includes any type of business structure that has an Employee Identification Number (EIN), also known as a Tax Identification Number (TIN)—meaning that this can range from a sole proprietor making peanuts to a large C-corp generating millions.
There are many ways that people can get your business/personal information. Here are the most common:
Related: Make Your Businesses Invulnerable to Corporate Identity Theft
There are many, many ways to help prevent identity theft. Here is a short list to get you started:
Pro Tip: Ninety percent of fraud is still initiated by receiving a phone call, NOT from someone mysteriously accessing your bank account. I help customers each week with fraud, and the truth is that the fraud happened because they GAVE a fraudster the username and password over the phone. Every. Single. Time. Just be smart, folks.
The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.