You have probably seen television commercials or heard radio ads depicting identity theft. These spots are generally designed to coerce consumers into securing credit card protection. But individuals are not the only targets of such scams. What happens if a business is victimized by con artists? The results could be catastrophic.

Case in point: Suppose the entire payroll deposit of a company is diverted or quarterly tax payments are illegally obtained by outsiders. The losses can effectively put a business “out of business.”

How are corporations victimized by identity theft? All it takes is the ability to gain access to a company’s database, create false accounts and authorize payments that can be kited from one destination to another. With the huge sum of money at their disposal, the perpetrators can easily pay to establish new identities for themselves. Once the crime has been committed, the chances of undoing the damage are slim.

As with most other crimes against corporations, it is likely that the corporate officers will ultimately be held responsible. Sometimes, they may even be involved in wrongdoing or participate in a cover-up. In many cases involving corporate fraud, the victims do not choose to report the crime or seek to have it prosecuted. Furthermore, the murky laws applicable to corporate theft may encourage deception. All these factors have contributed to a noticeable increase in corporate identity crimes.

What is the solution? There is no clear-cut answer. Technology may help, but it also can be a hindrance.

At the very least, a company should establish procedures involving personal identifications and passwords, authorization forms, countersignatures and other tracking features. Unfortunately, however, certain security measures may provide details for sophisticated criminal hackers and effectively “open the doors” to theft or fraud. Outsourcing of work and recent technological innovations—including online banking, shared systems, Internet service provider (ISP) and Active Server Pages (ASP) services—provide additional opportunities to criminals.

Employee training is often cited as a key aspect of deterring corporate fraud. Develop written guidelines so employees can better understand their roles in the organization, the values and assets of the organization, and the security measures that are needed. Most significantly, employees must realize that the old way of doing things will not suffice in this electronic age.

Do not think that your company is immune from corporate identity theft. Take steps to protect your livelihood. Consult with your professional advisers for the best course of action.