A study from American DataBank indicates that as much as 95% of all businesses in the US suffer from some type of business theft. In fact, with the slowing economy, the risks may be even greater.

Actually, I've known some examples where a company had to shut down because of the shenanigans of an employee (keep in mind that the most serious examples of business theft are often from employees).

But there are some precautions you can take (you can find out more details at BusinessTheft.com, which is an excellent resource). Let's take a look:

Background checks: Before hiring someone, it's a good idea to do a background check. Focus on verifying the resume and criminal checks. Also, has the person filed suits against prior employers?

Because of the complexities, it's a good idea to use a third-party investigation service. There are also some good online offerings, such as HireRight.

Data security: What if your customer records were breached? Or, what if the corporate bank account was drained?

Yes, you need to secure your data assets. Sure, this can be expensive - requiring extra software and probably some consulting - but it is critical.

Physical security: If you operate an office or a retail front, you should consider some level of physical security, such as cameras. With the growth of online technologies, video surveillance is becoming much more affordable. This is also the case with alarm systems.

Theft Insurance: No security system is full-proof. This is why you might consider purchasing theft insurance. Basically, this provides more coverage than typical insurance policies.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Entrepreneur's Journal: Protecting your business from theft originally appeared on BloggingStocks on Mon, 01 Dec 2008 07:00:00 EST. Please see our terms for use of feeds.