BUSINESS IDENTITY THEFT

Could Someone Open a Merchant Account in Your Company’s Name? Why Should You Care?
Most business owners know they need to protect themselves from credit card fraud, phishing emails, and stolen passwords.
But there is another type of fraud that deserves attention:

​Someone stealing your business identity and using it to open a credit card processing account. We are seeing this as a growing trend.
Fraudsters may obtain publicly available business information along with stolen or falsified personal information and attempt to establish a merchant processing account in the name of a legitimate business.
Once approved, that account could potentially be used to process fraudulent transactions—while appearing to be associated with you and your company.

​How Can This Happen?
A surprising amount of information about a business can be found online or through public records, including:

• Legal business name
• Business address
• Phone number
• Website
• Corporate registration information
• Names of owners or officers

Criminals may combine this information with stolen Social Security numbers, identification documents, banking information, or altered documents to impersonate a business owner.
They can then attempt to open merchant processing accounts, bank accounts, credit accounts, or other financial services in the company's name.

The Consequences Can Affect Your Legitimate Merchant Account
This is where business identity theft can become particularly serious.
If a fraudulent merchant account opened using your identity generates excessive fraud, chargebacks, or other prohibited activity, information associated with that account could potentially be reported to the Mastercard MATCH system.
MATCH is a database used by acquiring banks and payment processors to identify merchants and certain associated individuals that have been terminated for specified reasons.
Being associated with a MATCH listing can make obtaining or maintaining merchant processing services extremely difficult.

In some circumstances, identity theft involving a fraudulent merchant account could create problems for your legitimate credit card processing account as well.
You could find yourself having to prove that you had nothing to do with an account you never opened.
That is why business identity theft should be taken seriously and addressed as quickly as possible.

Warning Signs to Watch For
Pay attention if you receive:

• Mail or email from a payment processor you don't recognize
• Notices concerning merchant accounts you didn't open
• Unexpected deposits or withdrawals
• Requests to verify banking or ownership information for an account you didn't request
• Chargeback or collection notices involving unfamiliar transactions
• Calls concerning processing equipment you never ordered
• Credit inquiries you don't recognize

Don't assume an unexpected notice is simply a mistake. Investigate it.
Consider Freezing Your Personal Credit
One important step business owners can take is to freeze their personal credit reports with the three major credit bureaus: Equifax, Experian, and TransUnion.
A credit freeze is free and can make it more difficult for an identity thief to open new credit accounts using your personal information.
When you legitimately need someone to access your credit, you can temporarily lift the freeze and then put it back in place afterward.
A credit freeze will not prevent every type of business identity theft or guarantee that someone cannot attempt to establish a fraudulent merchant account. However, it provides another important layer of protection for your identity.

Protect Your Business
Treat your business information with the same care you give your personal financial information.
Be cautious about emailing driver's licenses, Social Security numbers, bank statements, and checks unless you know exactly who is receiving them and why.
Use strong, unique passwords and multi-factor authentication whenever available.
Periodically review your business bank accounts and business credit reports for unfamiliar activity.
Consider keeping your personal credit frozen when you are not actively applying for credit.
If someone contacts you claiming to represent your credit card processor, bank, POS provider, or another financial company, don't automatically provide information. Verify the person independently using a phone number or contact you already trust.

If You Discover an Account You Didn't Open — Act Quickly
If you learn that someone may have opened a merchant processing account using your identity or business information, don't ignore it.
Contact your legitimate merchant services provider, financial institutions, and the company associated with the fraudulent account as soon as possible.
Document everything, including dates, names, emails, letters, and phone conversations. You may also need to file an identity theft report and take additional steps to establish that the account was fraudulent.
The longer a fraudulent account operates, the greater the potential damage can become.

PROTECT MORE THAN YOUR MONEY — PROTECT YOUR BUSINESS IDENTITY
Business identity theft can affect much more than your bank account.
A criminal using your identity could potentially damage your credit, your company's reputation, and even your ability to accept credit cards through your legitimate business.

Protect your business name. Protect your personal credit. Protect your banking information. Protect your ability to accept payments.
 
Reach out to us, if you have questions. We are here to help your business. Call Tampa Bay Merchant Service 727-748-4181