Not much is said or written about business identity theft, because businesses can’t technically be the victim of such a theft. But there are a myriad of ways identity theft can impact a business.
Becoming a victim of identity theft is probably the biggest fear of many business owners, since your business credit is often tied to personal credit. It could spell doom for the business if the owner has to be away for countless hours sorting out the attached issues.
Some of the issues a business would face include:
• Loan acceleration. Most small businesses need some sort of loan to get going, buy inventory, rent office space, attend trade shows, provide training, payroll, renting office space or any number of other things. For most businesses, those loans are linked to the owner’s credit. Because of this, before extending any new loans, lenders will check the owner’s credit. If there are any issues, the lender may choose to accelerate the loan, which would mean they want the entire amount back within 30 days.
• Universal default. If a business owner defaults on or is late paying on an account, the lender could require the balance to be paid in full or raise the interest rate to the highest allowed by law. If his personal information has been stolen and a credit card obtained with it, the business owner may not even be aware the stolen card payment is late.
• If a business owner’s Social Security number has been stolen, the IRS may think he makes more money that he’s reporting. That could take a lot of time to clear up.
Dealing with a personal identity theft makes it impossible to focus on your business. And when you add the threat of losing your business on top of losing your good name, it can almost be unbearable.
Protect yourself and your business by signing up with LifeLock today. Go online at lifelock.com. Receive 30 days free and get a 10 percent discount on enrollment with the LifeLock Promo Code “Defense.”
