Court Case: Identity Theft And Fraud
I D EN TI TY T HE FT AND FRAUD :
THE I M PAC T O N U. S. B U S I N E S S E S A N D T HE
L E G A L S YS T E M
BUL 4320
Professor Wendy Gelman
Fall 2013
Law Firm 6:
Gricell Alvarez
Melissa Castaneda
Vanessa Diaz
Michael Johnson
Techeng Li
Ania Ojeda
Jose Tamayo
TA B L E OF C ONTENTS
I.
Introduction.........................................................................................3
II.
Identity Theft and Fraud...................................................................3-5
III.
Impact of ID Theft and Fraud on US Businesses..........................5-10
IV.
Impact of ID Theft and Fraud on the Legal System.....................10-14
V.
Conclusion...................................................................................14-15 …show more content…
Furthermore, banks or financial institutions are not required by law to cover most of the business’ identity theft losses which makes it even harder for companies to survive and bounce back from these types of attacks.
Business identity theft has become the most sophisticated and efficient scam for criminals due to the lower probability of raising flags and being caught. This is partly due to business accounts generally having higher credit limits, thus generating much larger transactions than consumers does not attract much attention and raise suspicion. "From a criminal 's viewpoint, it 's far more cost-effective to target a business rather than a consumer."8 As mentioned previously, the consequences of this crime are definitely prejudicial to the business because the majority of the time, the instance of fraud is detected when most of the money has already been stolen and the damage has been dealt. Unfortunately, this becomes a major reason for business to close their doors.
Steps Taken by Businesses to Prevent I.D. Theft and Fraud
Businesses spend much of their time on resources to attract customers and solidify those relationships. Unfortunately, all that it takes is one data breach, one paper lost, or
THE I M PAC T O N U. S. B U S I N E S S E S A N D T HE
L E G A L S YS T E M
BUL 4320
Professor Wendy Gelman
Fall 2013
Law Firm 6:
Gricell Alvarez
Melissa Castaneda
Vanessa Diaz
Michael Johnson
Techeng Li
Ania Ojeda
Jose Tamayo
TA B L E OF C ONTENTS
I.
Introduction.........................................................................................3
II.
Identity Theft and Fraud...................................................................3-5
III.
Impact of ID Theft and Fraud on US Businesses..........................5-10
IV.
Impact of ID Theft and Fraud on the Legal System.....................10-14
V.
Conclusion...................................................................................14-15 …show more content…
Furthermore, banks or financial institutions are not required by law to cover most of the business’ identity theft losses which makes it even harder for companies to survive and bounce back from these types of attacks.
Business identity theft has become the most sophisticated and efficient scam for criminals due to the lower probability of raising flags and being caught. This is partly due to business accounts generally having higher credit limits, thus generating much larger transactions than consumers does not attract much attention and raise suspicion. "From a criminal 's viewpoint, it 's far more cost-effective to target a business rather than a consumer."8 As mentioned previously, the consequences of this crime are definitely prejudicial to the business because the majority of the time, the instance of fraud is detected when most of the money has already been stolen and the damage has been dealt. Unfortunately, this becomes a major reason for business to close their doors.
Steps Taken by Businesses to Prevent I.D. Theft and Fraud
Businesses spend much of their time on resources to attract customers and solidify those relationships. Unfortunately, all that it takes is one data breach, one paper lost, or