As enterprise leaders, CIOs and CISOs are tasked with safeguarding not only corporate data but also the personal information of employees, partners, and customers. In today’s digital landscape, identity theft isn’t just a consumer issue—it’s a corporate security risk.
In 2021 alone, over 24 million people in the U.S. fell victim to identity theft. Many of those incidents stemmed from compromised data stored or shared across unsecured digital channels. Whether through phishing emails, weak file sharing platforms, or unencrypted storage, identity theft can escalate into operational disruptions, financial losses, and compliance violations.
To proactively protect your enterprise, it’s essential to understand the most common forms of identity theft—and how secure file sharing and encrypted storage can help mitigate these threats.
Common Types of Identity Theft Targeting Individuals and Organizations
1. Financial Identity Theft
This is the most well-known form of identity theft. It occurs when cybercriminals steal personal data to access financial resources—credit cards, bank accounts, or loans. Phishing attacks, skimmers, and data leaks are common entry points.
Enterprise Risk: If employee payroll data or executive banking details are leaked, attackers can directly exploit financial systems or impersonate personnel in business email compromise (BEC) attacks.
Mitigation Strategy: Use encrypted cloud storage and enforce access controls for all sensitive financial documents. Avoid sharing unprotected files through consumer-grade platforms like email or cloud drives without end-to-end encryption.
2. Social Security Identity Theft
Stolen Social Security numbers (SSNs) are used to open new credit accounts, apply for benefits, or commit fraud. Since the SSN is tied to nearly every major identity verification process in the U.S., its misuse can go undetected for months.
Enterprise Risk: If HR systems or personnel files are compromised, it exposes employees to long-term identity fraud—and puts your company at risk of regulatory penalties for poor data protection.
Mitigation Strategy: Store employee PII in systems with secure file sharing protocols, data encryption at rest and in transit, and role-based access permissions.
3. IRS and Tax Identity Theft
Criminals use stolen SSNs or taxpayer identification numbers (ITINs) to file fraudulent tax returns and claim refunds. In some cases, stolen identities are used to gain employment, leading to income being falsely attributed to the victim.
Enterprise Risk: Companies may be unknowingly employing identity theft victims or inadvertently contributing to tax fraud due to falsified records.
Mitigation Strategy: Secure HR file transfers with password-protected, encrypted links. Enable audit trails to track file access and sharing activity for sensitive tax-related documents.
4. Medical and Insurance Identity Theft
Using a victim’s name, health ID, or insurance policy, criminals can receive medical treatment, prescription drugs, or file false insurance claims.
Enterprise Risk: If a data breach exposes employee medical records (especially under self-insured plans), it could lead to HIPAA violations, legal exposure, and reputational harm.
Mitigation Strategy: Avoid storing health data on shared drives without strong encryption and access management. Adopt platforms that offer zero-access architecture and encrypted sharing for medical and benefits files.
5. Synthetic Identity Theft
This more advanced form involves creating entirely new identities using both real and fabricated information—like combining a legitimate SSN with a fake name and address to build credit over time.
Enterprise Risk: Fraudulent identities can be used to apply for employment or access enterprise services. Synthetic profiles may also be used to impersonate executives in targeted attacks.
Mitigation Strategy: Implement identity verification workflows for onboarding, and protect all identity-related files using end-to-end encrypted document management systems.
6. Criminal Identity Theft
In this scenario, a malicious actor uses stolen identity details—such as names or driver’s licenses—to commit crimes or avoid legal consequences, leaving victims with arrest records or unresolved fines.
Enterprise Risk: If an employee is wrongfully tied to a criminal record due to identity theft, it can complicate background checks, legal compliance, and access to sensitive roles.
Mitigation Strategy: Maintain strict protocols for background check data storage, and regularly audit access to criminal background reports and other legal documentation.
7. Child Identity Theft
Cybercriminals target minors because their SSNs are rarely monitored and often have no credit history—making them ideal for opening fraudulent accounts.
Enterprise Risk: If your enterprise stores family member information for insurance or tax purposes, this could be an unexpected vector for identity theft.
Mitigation Strategy: Encrypt all employee-dependent information, and use platforms that provide visibility into document access and tamper detection.
8. Digital Identity Theft
This is a broad category covering online identity impersonation via phishing, data breaches, SIM swaps, and account takeover attacks. Once access is gained, attackers can reset passwords, steal documents, or move laterally across systems.
Enterprise Risk: Account takeovers can compromise internal communications, file sharing platforms, and even trigger ransomware attacks by stealing login credentials.
Mitigation Strategy:
- Enforce multi-factor authentication (MFA) across all services.
- Use file sharing systems that verify URLs, allow for password-protected file links, and log all sharing events.
- Educate employees about phishing threats and link verification.
How Secure File Sharing Prevents Identity Theft
Most identity theft incidents stem from one thing: unprotected data. Whether it’s personal records stored in cloud drives or documents shared through email, many common tools don’t offer true end-to-end encryption.
Here’s how secure file sharing platforms like 689Cloud can help mitigate identity theft risks:
- End-to-End Encrypted File Storage: Files are encrypted at the source and can only be decrypted by the intended recipient—preventing third parties (even the service provider) from accessing the content.
- Password-Protected Sharing Links: Add an additional layer of authentication before recipients can access sensitive files. Combine with expiry dates for time-bound access.
- Detailed Access Control and Audit Trails: Set file permissions, track downloads, and receive notifications when documents are accessed or forwarded.
- Data Loss Prevention (DLP) Features: Prevent unauthorized sharing or downloading of files containing PII, financial data, or legal documents.
- Phishing and Malware Link Protection: Share links securely, with built-in link verification to prevent redirection to spoofed sites.
Final Thoughts: Identity Theft is a Corporate Risk—Not Just a Personal One
For today’s CIOs and CISOs, preventing identity theft means going beyond antivirus and firewalls. It requires implementing a data-centric security model that focuses on controlling how information is shared, stored, and accessed.
Secure file sharing isn’t just a convenience—it’s a frontline defense. By deploying encrypted platforms and promoting strong digital hygiene practices, enterprises can safeguard both employee identities and organizational integrity.
If you’re ready to take the next step toward secure file sharing that aligns with privacy standards like ISO 27001, HIPAA, and GDPR, 689Cloud offers a purpose-built platform designed to help enterprises protect sensitive data from modern identity threats.