Businesses can become victims of corporate identity fraud in several ways...

• Having their own identity stolen by criminals who then masquerade as the real company using its good name to obtain goods and services on credit from suppliers.
• Fraudsters can obtain signatures of company directors from public records and attempt to attack company bank accounts by purporting to be the signatory on the account.
• By supplying goods or services to criminals masquerading as another company and subsequently not being paid.

All businesses need to put measures in place to make it harder for criminals to use their organisation for criminal activity. Many of the common sense guidelines that apply to individuals can be adapted to protect companies.

Steps to consider

Check Identity

Always check the identity of your customers, both businesses and consumers. Credit reference agencies offer a wide range of solutions to authenticate and verify the identity of customers to ensure that they exist and are who they say they are.

• Don't be pressured into making a sale.
• Check the customer / client thoroughly.
• Can they provide original headed company paper?
• Never accept hand-written order forms or faxes.
• Identify the business partners and directors.
• Confirm the trading address of the business.
• Always confirm fax and telephone numbers. Try cold calling the number. Is the telephone code relevant to where the business says it is trading? Do they answer the telephone saying a business name?
• Always check the information provided to you by the customer. Did they provide trade references or bank references? Don't assume the information provided is correct, always double check and follow up the references. Also, don't forget to check the business giving the reference - are they truly impartial?
• What goods have the client ordered from you? Is the industry they're trading in relevant to what you supply?

Secure Document Procedures

Businesses have a duty of care to protect their customers’ and employees’ information and a legal obligation under the Data Protection Act. Establish good document management procedures and make sure they are adhered to...

• Lock away sensitive documents in a safe place and limit access to these documents to the key members of staff who really need them.
• Ensure all documents are disposed of securely - Shredding information is the best way to ensure that criminals cannot gain access to sensitive company details fraudulently. Confetti cut shredders provide greater security by cutting paper into small confetti-like particles and also reduce bulk waste.

Staff Training

Informing staff about the risks of corporate identity fraud will ensure that they remain vigilant. Ensure your document disposal policy is communicated to all employees. Caution them about the risk of giving out company information online or over the phone without first checking to whom they are giving the information.

Reduce the risk of electronic hijacking

Businesses must be responsible for ensuring that firewall and anti virus software is kept up-to-date. This way staff can securely open legitimate email attachments for viewing.

Companies House

• Check your ‘REGISTERED DETAILS’ (Directors, Company Secretary and Company Address) at Companies House or at Riskdisk. Make sure these are correct and that they have not been fraudulently changed.
• File your documents online and sign up for ‘PROOF’ at Companies House. In January 2005 Companies House introduced ‘PROOF’, a free, password protected, online system for companies to alter their details on the register. This system is far more secure than the existing paper record system as no changes can be made without a company-specific password.
• Sign up to an ‘alert’ system that will warn you of any changes to your company details. Riskdisk provides a Hypermonitoring facility for doing this. This will promptly alert you if any changes are made to your company’s details.
• Do not rely on Companies House records alone if determining whether to lend goods or service on credit. Companies House is a public record and not a crime prevention service or credit reference agency. Always satisfy yourself that your customer is legitimate by additional checks.