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Business Definition of Identity Theft

Although it gets less press than personal identity theft, business identity theft is a significant problem. Thieves steal the identity of businesses or corporations primarily to facility personal identity theft but they may also use these identities to 'steal' licenses or certification, or to take advantage of another business' reputation.

In today's world, identity theft has become a major issue. People have lost thousands of dollars, had their reputations damaged, and ended up in situations where it can take years to recover.


Stealing the identity of an individual is common. However, it is also possible to steal the identity of a business. The mechanism is the same. The criminals acquire personal information and then open a line of credit in the name of the business. They may pretend to be an employee in order to make large purchases from the business' vendors or suppliers.


Alternatively, they may use the stolen business identity to obtain personal information from large numbers of customers. The most common form this takes is what is known as phishing. The thief uses stolen or copied data to create legitimate-looking emails or letterhead, then sends out messages either to a business' customers or to a purchased or stolen list of email addresses. The hope is that people will then either respond to the message with personal information such as credit card numbers, or click to the thief's website and enter their name and password. (For this reason, it is always best to use your existing bookmark to go to your bank's web site, rather than clicking on links in email). Often, they use screen shots and simple tools to produce an accurate copy of the business' web site.


In other cases, thieves may steal a business' identity in order to acquire licensing or certification they are not entitled to or they may attempt to gain the benefit of another business' reputation.


Business identity theft is a growing problem, is connected to sophisticated criminals and in some cases, to organized crime.