One business to business fraud scheme used by identity theft thieves is the use of a shell company. This scheme involves purchasing goods from a medium sized well known business and having the goods shipped to a registered business that has been in existence for a long period of time, but dormant for many years. After the goods shipped, when the seller calls to confirm receipt, the seller will learn that the phone, fax, and e-mail address provided no longer exist. The invoice goes unpaid.

Another common scheme frequently employed in California involves renting out office space in the target’s building, assuming the name of the target business, applying for and receiving corporate credit cards in the target business’ name and then using those corporate cards to purchase everything from technology products to personal items. A similar method involves ordering the corporate credit cards, vanishing, and then selling the acquired cards on the street.

Identity thieves are increasingly targeting businesses because the police are less likely to pursue the thief when there is no individual victim and when a personal social security number is not involved.

What Businesses Can Do To Protect Themselves:

1. Protect Sensitive Information. Keep sensitive information in either a password protected electronic file (offline), or in a locked file drawer and restrict access to such information;
2. Shred ALL business records before tossing them in the trash. Anything with your name, business name and address, or the name or address of any of your vendors and suppliers should be shred;
3. Carefully scrutinize anyone asking for business related information over the phone;
4. Immediately disconnect terminated employees and independent contractors from your computer network;
5. Check your company’s credit report regularly; and
6. If your business is targeted, thoroughly investigate the matter yourself and bring your findings and leads to the police. Do not leave it to the police.