The “bust-out” scam has had many variations, but it’s a tried-and-true method that has actually seen resurgence in recent years, as thieves target small to medium-sized businesses that may not have the resources or the knowledge to catch this type of identity theft until it is too late.

This identity theft scam frequently involves a perpetrator posing as an authorized employee of the business to open lines of credit or purchase merchandise that is then charged back to the “real” business account. With only a few exceptions, states generally do not provide the same types of legal protections for businesses that are afforded to consumers who are victims of credit-related identity theft or account takeover.

If you are doing business with a company and have reason to question the  authenticity of a transaction, verification is in order. Call the company and confirm that the person you are dealing with is actually an employee. Thoroughly verify credit references.

If your own business UBI has been utilized in this kind of scam, contact all of your financial institutions and apply or change passwords for the business accounts; provide the bank with the names of employees authorized to conduct business on the company’s behalf. Report all suspicious incidents to the police as soon as possible.

Tags: identity theft scams, UBI fraud

Categories: UBI Theft Schemes.