Take note: Did you know your company's bank account doesn't enjoy the same protections as a personal bank account? If a hacker takes money from your business account, the bank is NOT responsible for getting your money back. (Don't believe me? Go ask your bank what their policy is on refunding money stolen from your account!)
One of the biggest problems with commercial bank fraud is the lack of understanding about the aftermath of the situation. Many business owners assume the same rules of personal banking apply to commercial business accounts. Well, they don’t. FDIC protects you from bank insolvency, NOT fraud. For example, many commercial claims are dismissed after only 24 hours, whereas personal account holders may have upwards of 60 days to report any case of fraud.
Another horrific concern impacting businesses is ACH fraud. ACH stands for Automated Clearing House. It’s basically a system for exchanging money between businesses and individuals using checks, wire transfers, and direct deposits. Criminals will often trick you into providing your bank information through phishing emails or pushing viruses onto your computers to steal important information. Once the hacker has this information, they can even change account information to block you as the original owner and authorize fraudulent transactions. The hacking of funds is done so quickly that by the time YOU – the victim – becomes aware of the shocking fraud, the criminal has already moved on to his or her next target.
What can businesses do to prevent loss from bank fraud?
Planning ahead is the best way to prevent the horror and mitigate the risks. Here are some tips to prevent bank fraud from happening to you and your business:
At the end of the day, planning and continuous education is the best way to prevent this shocking horror from happening to you. But real solutions won't come until small businesses realize the real risks they face – and implement these simple solutions to help mitigate those risks.