Jeffrey Friedman, Andrew Halbert and Joseph Superstein were featured in the Corporate Counsel article, "Identity Theft: It Happens to Corporations Too." Full text can be found in the July, 23 2015, issue, but a synopsis is noted below.
Jeffrey Friedman, Andrew Halbert and Joseph Superstein of Fox Rothschild explained in a recent post that identity theft among corporations is becoming much more popular and what happens when a company falls victim.
"Thieves are targeting 'dormant' entities at an increasing rate," they say.
Corporations that "administratively dissolve" by not complying with their legal and fiduciary duties are at the greatest risk for business identity theft. "Criminals realize that these entities may be vulnerable because they are less likely to be monitored for any business registration activity," they said.
The trio explains that these thieves are exploiting state filing systems and business registration websites by filing fake reports. These fake reports then turn into the thieves walking away with cash and property linked back to their fraudulent lines of credit. "Creditors attempting to verify application information may face difficulties immediately detecting fraudulent activity because the business records on file with the state have been altered to match the fraudulent credit application," they explain.
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