Identity theft can hurt any business, even if it’s as big as Yahoo. The company witnessed one of the largest data breaches in history in 2013 and 2014. The breach compromised names, email addresses, dates of birth, phone numbers, hashed passwords, and even encrypted security questions and answers of all three billion of its users.
The consequences were that the company lost its valuation and credibility, leading to a significant reduction in the purchase price when sold to Verizon. Fortunately, criminal defense lawyers came to their aid. These legal professionals are experts at managing the legal fallout from breaches, and they provided legal counsel and helped Yahoo implement measures to prevent future incidents.
Understanding Business Identity Theft
Yahoo is not an isolated example of business identity theft. However, according to Chandon S. Alexander, a criminal defense attorney and founding partner at Spartacus Law Firm, business identity theft is different from individual identity theft.
He states, “Business identity theft occurs when criminals assume the identity of a business to obtain loans, credit, or file fraudulent tax returns. It may also involve stealing business identifiers such as officer details and Employer Identification Numbers (EINs).”
He also explains that business identity theft can take many forms, like corporate identity theft, employee identity theft, and data breaches. Employee identity theft is when thieves steal an employee’s personal information; more than 316,500 cases were reported in 2020 related to employee identity theft. Similarly, over 560 million records were breached in 2024.
The Role of Criminal Defense Lawyers in Identity Theft Cases
Businesses must consider hiring a criminal defense lawyer to deal with legal fallout following a data breach. Their expertise goes beyond mere representation in court; they offer legal services to handle complex legal processes and help understand how to comply with data protection laws.
Preventative Measures
First, criminal defense lawyers advise businesses on best practices and legal requirements for cybersecurity to deter identity theft. They also educate employees on identifying and responding to fraudulent activities. They also play a role in creating robust policies for access control, data protection, and incident response.
Active Defense Strategies
When things go wrong, a professional criminal defense lawyer documents the crime by filing detailed reports needed for legal proceedings. They also place fraud alerts with credit bureaus. In case of employee identity theft, they prepare documents for insurance claims, close or freeze compromised accounts, and also dispute fraudulent transactions to reverse fraudulent charges. They also use laws such as the EFTA or the FCRA to protect businesses and recover losses. Finally, they represent businesses in court to defend against lawsuits.
Endnote
Just like individual identity theft, corporate security theft is becoming a serious issue to handle. If taken lightly, a security theft or data breach could lead to corporate fallout – think Yahoo! It is important to work on preventative strategies, which require a collaborated effort by the IT department and legal experts. Criminal defense lawyers can help develop policies and support businesses with active defense strategies. They can minimize losses and even help prevent future incidents by preparing a robust action plan.
