Are You Taking Credit for Avoiding Business Fraud?

Tina Samuels

May 17, 2013


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Credit fraud can happen to anyone.

Small business owners are a big target for credit thieves. While individuals are often targeted, the small business owner stands to take a huge hit when a credit thief takes their identity. The business can be ruined if a credit thief funnels funds into another bank account, sends out blank checks, or runs a scam using the business name and information.

Many of the tips for consumers can be used for business owners, big or small.

Keep Credit Information Safe

Small business owners are usually careful with their business' account information. Keep business credit cards in a safe place. This could mean something as simple as carrying a purse or wallet with a zipper. The more barriers between a thief and your credit cards, the better.

Brief cases should never be used to hold credit cards, even if they come with a combination lock. Those locks are very easy to smash open. Never give your credit card number to employees or anyone else to use.

Be wary of who you give your card number to over the phone or online. Always use a secured connection and a secure (SSL encrypted) website.

Blank Checks Should Remain Blank

Never sign blank checks. All checks should remain blank until you have filled in all of the information and handed them to the person payment is meant for.

This includes bank deposits. One scam that thieves are still running includes stealing checks from businesses and sending them to unsuspecting consumers with a letter that the consumer had 'won' several thousand dollars. The consumer would deposit the check into their bank account, wait seven days, and then send a specified amount of cash back to the scammer. By the time the business being stolen from found the fraudulent transaction, the scammer would be long gone.

Check Billing Statements

Every month your bank will sent you a list of transactions.

Most credit card companies will do this, too. Keep an eye on all transactions and report anything that you don't remember buying or authorizing. This simple step can keep you from losing thousands.

Employee Background Checks

Sometimes credit fraud can come from inside.

To help prevent hiring someone that will steal your business information, conduct background checks. Any employee that has access to money or credit cards for business should have a thorough background check. This can save your and even customers from identity theft.

Remember to always keep your credit information safe - no matter where you are.

Don't save passwords on your mobile phone, don't leave credit card information in your car, and never leave sensitive information in your vehicles. Identity thieves love unattended laptops! Don't use open/public wifi for making purchases many identity thieves can gather information from public wifi. Shred any documents with your credit card number or banking numbers, don't just toss them into the trash.

Finally, before choosing a credit card company to serve your business needs, look for one that has a protection program for credit fraud.

Simple steps can save you and your business' credit.