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Law enforcement saves company from ID verification failure

Dec 12, 2018 Dave King

Consumer fraud and identity theft have been grabbing up many of the headlines in recent years, especially during more risky periods such as the holiday shopping season. While individual-targeted theft represents a significant and widespread economic issue in the United States, business identity theft has become a more serious concern. Proper ID verification practices must be in place to defend corporate data from thieves.

The Darien Times recently reported that one company almost fell victim to a relatively complicated scheme that aimed to bilk the firm of tens of thousands of dollars. While the New York organization's ID verification performances seemed to be weak, not to mention its mishandling of accounts payable and receivable oversight, law enforcement was there to save the firm from significant losses.

According to the source, two New York-based cybercriminals allegedly worked together to open a fraudulent business after stealing a check from a real firm. The suspects managed to allegedly steal $57,000 from the sender's bank account, but the scam did not last long because the criminals were not as skilled as others.

The news provider explained that the big break in the case occurred because of the suspects' mismanagement of geographic information. Officials from the Darien Police Department stated that the two suspects registered their fraudulent business to a residential area, which served as a red flag and helped law enforcement to realize the scam before more damage could be done.

Any organization can fall victim to identity theft in today's highly risky digital economic landscape and, as such, decision-makers need to work to refine their policies and beef-up verification strategies to neutralize threats in real-time. Between data security software and accounts oversight, businesses can minimize the risk of information breach and subsequent financial losses.