Small business owners should definitely be worried about identity theft, a common problem not only in Singapore but also in other countries across Southeast Asia. Identity theft is one of the risks to all potential borrowers.
As small businesses have large credit products readily available to them, they are the biggest target for identity thefts. Here are some of the easiest ways to protect your small businesses from identity theft:
Protect personal details
While data breaches always grab the headlines, most of the identity thefts are done by directly collecting personal information from individuals. Make sure to share your personal details with trusted businesses and individuals only. Use trusted phone applications and bookmarked sites to assure that you are logging into trusted banks. Conducting proper background checks on employees is, nowadays, a standard procedure followed. You must also freeze your credit report and make sure that lenders cannot access your data without your authorization.
Track your credit
Identity theft may happen overnight, but it is the rate. Identity thieves do a thorough background study before targeting a potential victim. They do it by opening multiple credit cards and loans over a period of time. While doing this, they take care of making minimum payments to loans to avoid collection calls.
Spot such accounts early so that you can then take necessary actions to drive the thieves away.
In Singapore, there are many monitoring services, which allow you to check your credit reports. The monitoring services also send alerts on substantial changes including new mailing addresses and accounts.
Have good operation controls
Fraud at businesses can be easily avoided by using accepted business controls. Appropriate operation controls differ by industry and size and from business to business. Although they differ, they share a similar responsibility, to manage business funding by keeping a track of bank accounts. For identity theft protection, different people should be involved across different stages of the tasks to discourage graft.
For instance, if an office assistant cannot write cheques, there should be someone else involved, such as a manager or an accountant, to get the cash from the business. In an organization of honesty and integrity, that second person should report any conspiracy before any possible loss occurs.