VARs warned of ID theft dangers

On guard: Channel firms' product portfolios make them attractive targets for ID fraudsters

Channel firms must do more to protect themselves against identity theft, the Identity Fraud Communication Awareness Group (IFCAG) has warned.

The Home Office-backed anti-fraud organisation said the high value of IT products puts channel businesses at high risk of corporate identity fraud.

IFCAG chair Neil Munroe said: “These are items that can be shipped quickly and disposed of easily because there is always someone willing to pay less for IT products, so it is, potentially, a very lucrative market for fraudsters.”

Earlier this month online VAR SVP ann­ou­n­ced it had fallen victim to corporate identity theft with fraudsters attempting to acquire goods from suppliers in its name.

Laurie Beagle, divisional director of P &A Receivables Services, said unlike SVP, a lot of corporate identity fraud victims choose not go public.

“Victims tend to keep quiet because they do not want their competitors to know or other fraudsters to think that their company is an easy target,” he explained.

“Any losses incurred are often written off as bad debt and as a result it is a lot more widespread than is reported.”