In a recent article from restaurant online we saw that there has been an increase in the number of restaurants that have been affected by Identity theft. With a BBC report revealing that more than 750 fake firms were registered in the last 6 weeks.
In the instances mentioned in the Restaurant article, we see that fraudsters are registering fake businesses with names incredibly similar to those of pre-existing restaurants. Adding an extra letter or otherwise changing the spelling of a restaurant to create a fake business.
With the fake business now in place, these fraudsters apply for bank accounts and loans from banks, and order high-value goods from suppliers who are all too willing to fulfil for the high-profile client they believe to be sending the produce to.
A tarnished reputation. The hospitality industry thrives on its ability to provide a safe and trustworthy environment. If customers fall victim to scams involving your business’s name, the damage to your brand’s trustworthiness can be irreparable.
In this article from Restaurant Online, we find that Heston Blumenthal is demanding that more be done to prevent these identity fraud incidents. With such a staggering number coming through in the past 6 weeks alone, it’s understandable that more needs to be done.
With potentially 18 months being taken to rectify these issues, both companies house giving a clearer more streamlined process in the removal of these fake companies, or carrying out checks on the identities of these fraudulent businesses when they’re made would be more than enough to cut back on the number of these businesses popping up.
Protect your sensitive information to prevent these fraudsters from causing further damage to your business finances and reputation.
Businesses should educate their employees about the risks of business identity theft and train them to recognise and avoid common scams, such as phishing.
If a business discovers that it has been a victim of identity theft, it should act quickly to minimise the damage. This can include notifying the authorities, informing customers of the scam, and taking steps to repair the business’s credit and reputation.
ETC Finance is here to help you manage your finances in the event of identity theft and stay vigilantly on top of your finances to prevent any serious damage from being made in the event of identity theft. For help managing your finances get in touch with ETC Finance today.