Business Bank Accounts Vulnerable to Cybercriminals Joyce M. Rosenberg - The Associated Press
go to original March 6, 2016

It's a chilling moment when a small business owner discovers hackers have stolen thousands of dollars from the company checking account.

Cybercriminals took an average $32,000 from small business accounts, according to a December survey of owners by the advocacy group National Small Business Association. And businesses don't have the same legal protection from bank account fraud consumers have.

The Electronic Funds Transfer Act, passed in 1978, states that it's intended to protect individual consumers from bank account theft, but makes no mention of businesses. Whether a business is protected depends on the agreement it signs with a bank, says Doug Johnson, a senior vice president with the American Bankers Association, an industry group. If the business hasn't complied with any security measures required by the agreement, it could be liable for the stolen money, he says.

Any business is vulnerable, but small companies are less likely to have security departments and procedures to guard against online theft than big corporations do. They also don't have big revenue streams that are better able to absorb losses from a theft. And even if they get the money back, they still have to spend time and money dealing with the hassles of closing accounts and opening new ones.

What Can You Do?

Business accounts are safer at banks that use what's known as two-factor authentication, requiring unfamiliar account users or devices to supply additional information like one-time access codes. Sophisticated banks also have software that flags emails or attempted logins from unfamiliar Internet service providers, he says.

Additional steps owners can take:

• Everyone in the company must be hypervigilant about emails, being wary about clicking on links and attachments and checking the addresses that emails came from. Criminals may create email addresses that look familiar but that might have an extra letter like an "I'' or "i'' not apparent at first glance.

• In the case of wire transfers, put procedures in place so several managers must sign off before a transfer can bemade.

• Keep a close eye on accounts. If you can't check your balance daily, get text alerts whenever there's a withdrawal.

• Don't log into your bank from an airport, hotel lobby, coffee shop or other public space that offers free Wi-Fi. Resist the temptation to log in until you're home or in your office.

Read the rest at Phys.org

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