Small Business Identity Theft
The small business is considered a king in the United States of America.
This isn’t to say that IBMs as well as the Walmarts of the across the globe are on a way out of a picture. And even the big enterprises do not hold a lion’s share of the dollars that are in circulation.
Hence the United States Census Bureau and the Small Business Administration revealed that 99.7 percent of the American employers are actually classified as the small business. Thus, many of these employ just a few people. The same bureau reports that the small businesses actually accounts for 42.9 percent of the already existing jobs and 64 percent new jobs in private sector.
Why Just Small Businesses?
Though, a small business community just holds the bigger amount of money of the nation. Thus, this amount which passes through every business is quite small than the global enterprise. Hence, consequently, the small businesses aren’t basically regulated with the scrutiny like the bigger corporations.
There are many cases where there are just a few requirements of SEC reporting, there is no stockholder to answer to. There is a small regulatory oversight in order to ensure that the businesses are actually working as required and thus keeping the interest of the public at first.
Creating or Stealing the Business Identities is Quite Easy
Just like some individual, the business has its profile that consists of the identification of credentials. Rather than the Social Security number, this has the Employer Identification Number (EIN). The EIN is linked with the business address, name, and contact information.
Thus, if you are going to apply for the personal loan along with the SSN, other details, and the name then the lenders need an access to the volumes of a piece of information about last credit that you have already extended and the payment histories.
An Application Frequency is a big Fraud Indicator and Not Credit History
If you are applying for the loan then it is not unusual to submit the application to many lenders for hedging against the declined application and to choose the perfect rate of interest that is available to you.
But, this will be unusual for you regarding submission of the applications for the auto loan, credit card, mortgage, and cellular phone services in one day.
Credit-worthiness is not about the History
In the previous years, many people have already heard the discussions regarding service providers and lenders that take into account the personal social media as well as other factors in order to decide about approving or denying the loan or the service applications.
When, the intent of the XOR’s study was involved to identify the small businesses fraudulent ways and to answer the lingering questions regarding the service providers. Then the final goal was to just make 2 predictive models in order to measure the fraud as well as the credit risk through collecting the applications from different industries as well as businesses. These businesses do not generally share the data with one other.
There were top indicators of the credit-worthiness which were actually determined for application history, just like social media profiles, geography and the components of the online presence of a business, publicly listed hours of different operations and usage of particular words which shows the legitimacy of a business.
It is not surprising that they show the details of various service providers of the small businesses while evaluating the application. But, those aren’t the items that you would search by pulling the credit report of the business. They aren’t there in credit scores that are used by the traditional United States business credit bureaus.
Securing Your Business
In case an organization gives a service for small business in form of the hardware, money, or just time as well as effort of the employees. In that case, you must make an investment in the risk management efforts. It might mean to change the applicant evaluation process in order to include diligence or bring in the analytics struggles to ensure if you accept the application that you are making some great investment.
When you are not going to serve the small businesses then there’s a 99.7 percent chance that you have or working for the one.
