Tax season is a busy time for fraudsters, but there are steps you can take to protect your business. Identity theft is a serious threat to businesses, both large and small. You may think identity thieves wouldn't be interested in your business because you're not a giant corporation with lots of money and information. But that's not true. Today, small businesses are targeted disproportionately by fraudsters. Why? Because most small businesses are easy marks.

The IRS and the SBA recommend taking strong security measures to protect your business and your employees' data.

How do I know if someone has targeted my business?  

Be alert to possible business identity theft if:

• You can't e-file a return because someone already filed one with the same EIN or SSN.
• You get a rejection notice for a routine extension request because a return with a duplicate EIN or SSN is already on file.
• You receive an unexpected tax transcript or IRS notice that doesn't match anything you've submitted.
• You don't receive expected or routine correspondence from the IRS because someone changed the business address.

What can I do to protect my business?

Take the strongest actions possible to safeguard your systems and data. Here are recommendations from the SBA and the IRS:

• Install anti-malware/anti-virus security software with automatic updates enabled on all devices, including laptops, desktops, routers, tablets, and phones.
• Deploy firewall protections on your network.
• Use responsible passwords with:
• • At least eight characters (longer is better)
  • Special and alphanumeric characters
  • Passphrases instead of passwords
  • Unique passwords for each account
  • Protection on wireless devices
  • A password manager
• Choose multi-factor authentication when available
• Encrypt sensitive files and emails with strong password protection.
• Back up sensitive data to a secure external source not connected to your network.
• Destroy old computer hard drives and printers that contain sensitive data.
• Limit access to personal data only to individuals who need to know.

How to report suspected Identity Theft or Data Loss

• Report suspected identity theft by submitting an affidavitReport identity theft on the IRS business helpline
• Report a suspected business data security breach
• Report a Form W-2 email scam involving employee data

Learn more in these resources 

• Start with Security: A Guide for Business from the Federal Trade Commission
• Small Business Information Security – The Fundamentals from the National Institute of Standards and Technology
• Data Security Resource Guide (PDF)
• Identity Theft Central

If you need cash to implement the security recommendations outlined here, Quikstone Capital Solutions can help. The process is fast and easy – there's a simple, one-page application, and no collateral is needed. If you accept credit cards, you could qualify for up to $250,000. Quikstone has an A+ rating with the Better Business Bureau, and over 80% of our merchants are repeat customers. Contact us today to learn more.