Too Small to Fall Victim to Identity Theft? Think Again.

Media: Inc.
Link: Too Small to Fall Victim to Identity Theft? Think Again.

Identity theft doesn’t just happen to big companies; it’s a problem for small operations, too.

A few years ago, Joe Palumbo, owner of Minneapolis-based Ice Dam Guys^®, started getting angry calls about shoddy work. He was dumbfounded. There was no record of him servicing these people. Negative online reviews about his company’s ice removal services also began popping up from customers that weren’t his.

After some digging, he learned that someone else was using his company’s name, causing immense confusion. Because he was a local leader in the ice dam removal business, he believes it was done maliciously. “He stole my company’s identity,” he says. “He was riding our coattails to get some of our business.”

Unfortunately, identity theft is a growing problem among small companies. In 2016, there were 82,000 reported cyber incidents among business of all sizes, says Craig Spiezle, executive director of the Online Trust Alliance, an organization that promotes online trust and security. Unreported incidences could bring this number closer to 250,000 a year.

“You have to rethink what’s an incident,” he says. “Today’s threats have expanded exponentially, taking over social accounts, causing reputational harm, and affecting the identity of everything related to that business.”

In today’s world, breaches are inevitable, says Spiezle, and organizations need to be prepared.

When such breaches happen, they can cause major problems, especially for a small business, says Jerry Thompson, senior vice-president at Identity Guard, a Virginia-based business that helps prevent identity theft via a suite of security products.

Compromised business owners may have trouble receiving loans from banks, customers could stay away, and employees may find their own data stolen.

Generally, hackers use stolen data in multiple ways, says Thompson. They may withhold data for ransom, sell the stolen information, or use it to harm the identity and reputation of the company for personal or financial gain.

Identity Guard provides several layers of protection with its new Breach Readiness product. First, customers conduct a forensic scan to find vulnerabilities in their computer systems. Hackers usually gain access to a company through phishing scams – an email is sent to a staffer who clicks on a link, allowing the hacker into the system – and they then work their way into a network through these vulnerabilities.

It is critical for owners to first find them and then patch them, says Thompson.

Identity Guard has also created a document for its customers, which outlines best practices on how to prevent and handle a breach.

The idea is to prevent an attack, not simply react to one. “You don’t want to sit around and wait to get hacked,” he says.

If a breach does occur, Identity Guard will help fix the problem. They provide identity-monitoring codes that alert employees if their personal information is used, and they also help people get their identity back by telling them how to deal with credit card companies or other affected services.

Palumbo would have been well served by using other Identity Guard services, including social media monitoring.

Independently, he hired a lawyer, sent a cease-and-desist letter, and used takedown notices to get content removed from the Internet. While the other company stopped impersonating his business, he knows there is always a danger of fresh attacks. “If you’re a leader, you’re always going to be a target,” he says. “I just need to be prepared for it.”