NSBA PARTNER - Bitdefender | What Is Business Identity Theft and How to Protect Your Small Business

Small Business identity theft is a fast-growing form of fraud in which criminals impersonate a company to open credit lines, reroute funds, or take out loans. Here’s how it happens, the warning signs, and the steps small business owners can take to protect themselves.

DEC. 03, 2025 | Identity theft doesn’t just affect individuals, it increasingly affects businesses. Business identity theft, sometimes called commercial or corporate identity theft, happens when criminals pose as owners, managers, or employees to open lines of credit, apply for loans, or conduct financial transactions in a company’s name. The goal is simple: use a business’s identity for financial gain before anyone notices.

Criminals often rely on sensitive information such as a business’s tax identification number (TIN), account details, or the owner’s personal information. With that data, they may access company bank accounts, take out credit, or change account information. Many business owners discover the fraud only when unfamiliar bills, collection notices, or tax-related issues begin appearing, often after significant damage has been done.

Why business identity theft is growing

More business information is available online than ever before. In the U.S., public records laws require companies to publish details such as registration information, officer names, and tax numbers. Combined with data leaked in breaches, this creates a sizable pool of information criminals can use to impersonate a firm.

Thieves may also gain access by stealing documents, exploiting weak passwords, or using phishing emails that look like messages from banks, service providers, or government agencies. Some even create fake social media accounts or clone a company’s website to redirect payments or collect sensitive information.

Common types of business identity fraud

Once criminals gather enough information, they can commit several forms of fraud:

• Financial fraud, such as opening credit lines or applying for credit cards in the business’s name.

• Tax fraud, using an Employer Identification Number (EIN) to file false returns or claim refunds.

• Fake LLC registration, where criminals register a near-identical company in another state and reroute payments or mail.

• Fraudulent applications for grants, loans, or benefits, especially during periods of economic relief.

Warning signs

Businesses often uncover identity theft after noticing irregularities such as:

• Bills or collection notices for accounts they didn’t open

• Unfamiliar credit inquiries or charges

• Missing mail or address changes they didn’t request

• Clients receiving fake invoices that appear to come from the business

How to protect your business

Regularly reviewing both personal and business credit reports is one of the most effective early-warning measures. Owners should also secure sensitive documents, limit access to financial information, and train employees to spot phishing attempts and suspicious emails.

Cybersecurity tools can also play an important role. Bitdefender Ultimate Small Business Security helps block phishing attempts, detect malicious links, and alert businesses if their information appears in a data breach, critical protections as identity-related fraud continues to rise.

NSBA has partnered with Bitdefender to bring small businesses a dedicated solution built for teams without in-house IT. Check it, here.