What is Business Identity Theft?
Business identity theft is a new avenue in corporate crime. The identity thief uses your business identity to establish lines of credit with banks or retailers. The thief will use your credit lines for his personal advantage such as:
- Purchasing home improvement items
- Commercial electronics
- Gift cards
- Any other item that can be sold for cash instantly
Impact of Identity Theft on Businesses
The identity theft causes devastating effect on the victim’s business. They can damage the reputation of the business and lead to operational problems in dealing with banks and creditors later on. The cost to clean up and correct the damage can be hundreds of dollars and hours of lost time. The rate at which the businesses are facing the issue of identity theft has increased over the past years.
The reason due to which the businesses are becoming the target of the fraudsters is the fact that they gain greater advantage and more money by stealing the identity of businesses rather than individuals.
Business owners are unaware that their identity has been compromised until they receive a letter or notice from the IRS or another federal or state agency. Beyond financial loss and the substantial time and resources spent to correct resulting tax and financial issues, business owners must also deal with a damaged business reputation and heightened concern from employees and clients.
Inorder to avoid the business theft problems it is better that the business pays taxes beforehand. Take help from a professional organization such as Tax Help MD and get your taxes filed on time.