How to Protect Social Security Numbers in a Business

Some people shred or burn paperwork with their Social Security number on it.

Identity theft is on the rise. More than ever before, people are getting their personal information stolen. There is easier access to Social Security numbers through private identification information systems. Some systems -- even if password protected -- may be vulnerable to attack, especially on the Internet through sites that are not hacker safe or tested daily against infiltration. As a business owner, paper documents with your customers' sensitive information should be kept in a secure place.

Things You'll Need

• Internet access
• Social Security number
• Employer identification number
• Bank access

Instructions

1. Protect yourself as a business owner from identity theft by securing an employer identification number, or EIN, instead of using a personal Social Security number in business transactions.

2. Go to the Internal Revenue Services website under the Employer Identification Number listing. Apply for an EIN for your company. The listing should be on the front page in the left-hand column. Check your mail delivery for a confirmation. It should take about two weeks for the EIN number to enter official IRS records.

3. Use an EIN number instead of your Social Security number when establishing a business relationship with a new supplier or vendor, when applying for a credit account or in issuance of payments.

4. Go to the bank and establish a business account, using the EIN for business accounts, and set up the account in the name of your business only. This will help to protect you from possible identity theft because information is sometimes kept separate from personal credit history. Use the EIN number instead of a personal Social Security number for setting up a payroll system, if you have employees.

5. White out your personal Social Security number on printed documents and computer printout files that are accessible by employees, business partners or clientele. Always type Social Security numbers on secure servers at websites that begin with https://. The information will be submitted in encryption during the transmission process and further protected.

6. Get rid of all unnecessary documents with your Social Security or EIN number on it. If the document isn't stored away in a secure file under lock and key, or in a safe, make sure to shred the documents so they cannot be read. First take a black magic marker and go over the numbers before shredding, for extra concealment of the numbers before the paperwork is shred.

7. Protect your identity further by having your name removed from telemarketer lists. Ask the telemarketers who call your home who they are affiliated with and politely -- yet firmly -- tell them to remove your name from their list, or that you wish to be placed on their own internal "do not call" list.

References

• Business.com: How to Protect Your Business Privacy