SME IDENTITY THEFT: SME IDENTITY THEFT KPI/ Guarding Your SME Against Identity Theft

Types of Identity Theft

Account takeover identity theft occurs when a fraudster gains unauthorised access to an individual’s existing accounts. On the other hand, criminal identity theft involves using someone else’s identity when committing a crime, potentially implicating the victim in illegal activities. These types of identity theft can have severe implications for small businesses in Europe, leading to financial harm and legal issues.

One example of identity theft affecting SMEs in Europe is when hackers gain access to a company’s financial accounts and make unauthorised transactions, causing monetary losses and disrupting business operations. By understanding the various types of identity theft, small businesses can better protect themselves against these threats.

Common Methods of Identity Theft

Small businesses in Europe may fall victim to identity theft through a phishing email that tricks an employee into providing login credentials, allowing hackers to access the company’s sensitive data. By being aware of these common methods, SMEs can implement robust security measures to mitigate the risk of identity theft.

Preventive Measures

Small businesses in Europe can protect against identity theft by implementing a document shredding policy for all sensitive paperwork and encouraging employees to use digital wallets for secure online transactions. By adopting these preventive measures, SMEs can strengthen their defences against identity theft incidents.

Reporting Identity Theft

If a small business in Europe suspects identity theft, they should immediately report the incident to the local authorities and notify their financial institutions to prevent further fraudulent activities. By understanding the reporting process, SMEs can take swift action to mitigate the consequences of identity theft.