Taking Credit
Washington shields businesses from identity theft losses.
After a troubling report from the FTC on identity theft, Congress is moving to make it easier for small businesses to prevent losses caused by thieves who have stolen someone's credit card. The House passed the Fair and Accurate Credit Transactions Act of 2003 (H.R. 2622) a week after the FTC report was issued.
Joe Rubin, executive director of technology and e-commerce for the U.S. Chamber of Commerce, says the bill will help entrepreneurs in two ways: by protecting their credit rating and by shielding them from losses from identity theft. The bill accomplishes this by allowing consumers to issue "fraud alerts" to credit bureaus. This would ostensibly stop banks from opening bogus accounts for thieves in the name of someone whose identity they've stolen (via a credit card or bank account number). "Small-business people finance themselves using their own credit cards, second mortgages and personal lines of credit during lean times," Rubin says. "This bill protects that ability."
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
-
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
-
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
-
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
-
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
-
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
-
Struggling to Come Up With Creative Ideas? Try Doing This.
-
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.