Protecting Your Business from New Account Fraud

How New Account Fraud Targets Businesses

In 2024, reported losses from new account fraud hit $6.2 billion, more than double compared to a decade ago.

New account fraud targeting businesses is a growing threat. Criminals use your business’ EIN, public registration filings, or impersonated officers to open fraudulent accounts, obtain credit, and cause significant financial harm — often before your business is aware anything is wrong.

Protecting your business identity requires the same care and attention you give your personal identity.

What is Business New Account Fraud?

Business new account fraud happens when criminals use your company’s identity — its EIN, formation documents, officer information, or a fabricated version of it — to open fraudulent bank accounts or obtain credit. Criminals may access this information through:

Public state business filings, which list your EIN, officers, and registered address
Data breaches that expose employee, officer, or customer records
Impersonation of officers, signers, or vendors using forged or altered documents
Dark web marketplaces where stolen business and personal data is bought and sold

Why Is This Dangerous?

If a fraudster opens an account using your business identity, they may:

Obtain lines of credit or loans in your business’ name with no intent to repay
Deposit fake checks and withdraw funds before the checks are returned
Damage your business credit profile, affecting future borrowing and vendor relationships
Expose officers or owners to personal liability depending on you business structure

Because business registration information is often public, any business can be targeted — not just those that have experienced a data breach.

Steps You Can Take to Protect Your Business

Monitor your business credit profile: Review your business credit reports regularly through Dun & Bradstreet, Experian Business, and Equifax Business. Look for accounts or inquiries you don’t recognize.
Protect your EIN and business documents: Limit who has access to your EIN, operating agreements, and formation documents. Shred sensitive financial records before discarding.
Monitor your state business filings: Set up alerts with your state’s Secretary of State office to be notified of any changes to your business registration or officer filings.
Use dual controls for account changes: Require two-person approval for any new account openings, signer changes, or updates to payment instructions. Never act on banking change requests received by email alone.
Verify new vendors and employees carefully: Independently verify banking details for any new vendor or employee through a known phone number before processing payments or setting up accounts.

What to Do If You Suspect Fraud

Contact HomeTrust Bank immediately: Call your HomeTrust relationship manager or our Customer Care Center at 800.627.1632 — we can help review your accounts and take immediate protective action.
Place a fraud alert on your business credit profiles: Contact Dun & Bradstreet, Experian Business, and Equifax Business to flag your profile and alert creditors to verify identity before extending credit.
Review your business filings and credit for unauthorized changes: Check your state business registration for unauthorized officer or address changes and dispute any unfamiliar accounts on your business credit reports.
Report to the FTC and law enforcement: File a report at IdentityTheft.gov and consider contacting local law enforcement and your state Attorney General’s office for business identity theft.
Continue monitoring your accounts and business credit: Business identity fraud can happen again. Review your business credit profiles, bank statements, and state filings regularly, even after you resolve and incident.

Fraud Prevention Reminder

HomeTrust Bank will never ask for your EIN, account credentials, or officer information via unsolicited calls, texts, or emails. When in doubt, contact your relationship manager directly using a known number.