In light of a recent cyberattack that exposed millions of Social Security numbers, small business owners should take proactive steps to safeguard both personal and business data. A data breach can lead to long-term financial fraud and identity theft, which could disrupt your business operations. Here are some ways to protect your sensitive data.
Monitor Your Social Security Account
Regularly monitoring your Social Security account allows you to stay ahead of potentially fraudulent activity. By reviewing your account periodically, you can catch any unauthorized changes or irregularities in your benefits, which could be early signs of identity theft. For small business owners, this vigilance is especially important, as any disruptions to your Social Security benefits could impact both your personal and professional finances.
Get an IRS Identity Protection PIN
Securing an Identity Protection PIN (IP PIN) from the IRS adds a layer of protection for your tax returns. This unique six-digit code prevents anyone from fraudulently filing taxes in your name, ensuring your Social Security number isn’t used for unauthorized filings. To get started, you’ll need to set up an ID.me account and register for the IP PIN, which you will need to use when filing each year.
Freeze Your Credit
By freezing your credit with major credit bureaus—Equifax, Experian, and TransUnion—you effectively block new credit applications from being processed in your name. This safeguard helps prevent identity thieves from opening fraudulent credit accounts. For small business owners, this is crucial because fraudulent accounts can damage both personal and business credit. Don’t forget to also protect the credit of vulnerable family members, such as children and seniors, as they are often targeted by identity thieves.
Why These Actions Matter
For business owners, protecting your personal financial information is key to maintaining the health of your business. Data breaches can have long-lasting effects, so taking these steps can provide much-needed peace of mind. In fact, in 2023, there were 3,205 data breaches that affected more than 353 million individuals. By staying vigilant and taking these proactive steps, you can better protect yourself and your business from the long-term effects of identity theft and financial fraud.