2009-04-15

By Editor, CIR

Businesses should combat the 50 to 100 cases of corporate identity fraud that occur each month by shredding confidential data, says an expert.

Confidential data destruction firm Shred Easy says companies need to step up their security during the recession.

The firm's managing director, Jim Watson, warns that businesses are risking millions by having no confidential data policy in place

"Creating or updating a confidential data policy must be a priority for businesses as we move deeper into recession," he says. "It's not just confidential paper documents that need to be securely destroyed but computer hardware such as disk drives and data sticks."

"With little knowledge or effort, a fraudster can change the registered office of the business, trading address and even names of directors. Companies with a good trading record are then vulnerable if orders for expensive goods are placed and not paid for."

The firm recommends the following tips to help prevent business fraud:

Create a confidential data policy: Firms without one are already in the high risk category for being a victim of data theft.

Store data safely: Bagging it up is not enough and criminals have rich pickings outside business premises where confidential data has been poorly disposed.

Destroy data properly: Shred all confidential data and arrange for a professional company to help store, collect and securely destroy information. Ensure you know where the data is heading.

Check identities: Use credit reference agencies to verify the identity of business customers, suppliers and clients.

Secure your accounts: Don't allow details of your business banking to escape into the public domain. Thieves are adept at impersonating signatures.

Inform staff:Train staff on how to deal with confidential data properly and monitor their behaviour. Most business fraud is committed by people within the business.

Keep post safe Theft of post is a major issue for businesses. Scammers may try to redirect your mail without your knowledge.

Restrict key documents: Don't allow staff to have full access to all your company documents. This applies to paper and digital data.

Use anti-virus software: Businesses still get fleeced by online scammers. Installing credible anti-virus software is necessary to combat this threat.

And, avoid carrying large amounts of confidential data on laptops, data sticks or mobile devices such as Blackberrys and iPhones. These small portable gadgets are magnets for thieves.

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