Retailer Welcome Baby Home has won the first Identity Fraud Prevention award, which forms part of the UK's 2010 National Identity Fraud Prevention Week.
The annual campaign, which began on 18 October this year, seeks to inform businesses and consumers and about the threat of ID fraud.
The Identity Fraud Prevention Awards were introduced to reward a company for excellent work in fighting identity fraud.
Welcome Baby Home was the award's first recipient for overhauling its approach to information security after the company website lost £2,000 due to fraud.
The company changed the billing and security practices to ensure they were the safest possible, updated payment processing systems, and revamped supply chain processes.
The company also introduced full background checks on employees, processes to follow up by phone all purchases over £50.
Judges said the company has become a good example of how to prevent identity fraud.
"Businesses can take simple steps to protect themselves such as creating an anti-fraud policy, as well as having a comprehensive IT security policy and securely destroying all sensitive documents," said John Inverdale, spokesperson for this year's National Identity Fraud Prevention Week.
The awards are supported by City of London Police, Equifax, Experian, Fellowes, Metropolitan Police and the National Fraud Authority.