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Despite recent warnings that corporate identity theft is costing businesses as much as £50 million a year, a new survey from Equifax has revealed
that three quarters of business owners fail to carry out the simplest of credit
checks on potential customers.
The picture is even worse when it comes to dealing with potential suppliers,
with 75% admitting they don’t run any form of background checks.
The worrying statistics were revealed in the latest survey from Equifax, which
has long warned about the dangers of corporate identity crime.
Neil Munroe, External Affairs Director of Equifax, admitted he wasn’t surprised
by the findings.
He explained: “I am disappointed – but not surprised – by these findings.
"Far too many businesses are failing to take the issue of corporate ID fraud
seriously despite all the warnings.
"The risks are very real but if a business can’t make the effort to check
potential customers or suppliers, they are leaving themselves wide open to what
could amount to catastrophic losses.”
It is also surprisingly easy for fraudsters to change company documentation
through Companies House who are legally bound to accept any documentation they
receive at face value.
As a result, it is imperative that business owners monitor their registered
company information regularly.
But the Equifax survey reveals that only 31% of business owners do this as a
matter of course.
The survey also highlights worryingly lax attitudes to personal identity fraud
with the revelation that one in three companies that are handling personal
customer information including bank details have no clear policies in place to
dispose of this sensitive data.
“All organisations that process personal information must comply with the
principles of the Data Protection Act,” confirms Munroe. “I find it breathtaking
that companies are gambling with their customer’s security. If personal
information is not disposed of securely; there is a risk that it could fall into
the wrong hands", added Munro.
"There are some simple steps that can be taken to help prevent company ID fraud
and Equifax has put together a guide to Combating Corporate ID Theft & Fraud
which gives advice on reducing the risk of falling victim to corporate ID fraud.
“This guide provides business owners with everything they need to know about how
they can protect their organisation from this invisible crime.
"After all, the cost of ID theft and fraud is three-fold. Money, reputation and
the confidence of customers are all at risk without it.”
To obtain a free copy of the guide, call 01274 759 729.
Source:
Credit
Control Journal
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