According to the Federal Trade Commission (FTC) data from its Consumer Sentinel Network (CSN), an online database of consumer complaints available only to law enforcement, identity theft was the top consumer complaint in 2011, accounting for 17% or 287,232 complaints of the 1.8 million received; 990,242 of these cases involved fraud.
There are no reliable federal or state statistics that specifically track business identity theft, but various studies suggest that businesses do not report the crime because of the stigma attached to it. The company’s credibility and trust of its clients may never recover if they admit to being a victim.
Business identity theft comes in many forms. Posing as a look-alike or sound-alike business, and impersonating owners, officers or employees to illegally get cash, credit, and loans, is just one example. Thieves typically steal a business’ identity by gaining access to its bank accounts and credit cards, or by stealing sensitive company information, such as its tax identification number (TIN) and the owners’ personal information. Elaine Marshall, North Carolina’s Secretary of State, sees an increasing number of cases involving falsified documents. Marshall says that “the easiest targets are dissolved corporations, because whoever ran those defunct businesses usually no longer pays attention. Somebody comes 20 years later and reinstates it, and it looks like it’s a 40-year-old corporation. And if it was in good standing financially when it was dissolved, then