You know how your personal bank account is protected if you lose your debit or credit card as long as you notify the bank within a specific period of time? Well, this same protection occurs if the bank’s accounts are hacked and your money is taken. The bank is responsible, not you. The bad news is, this protection only applies to personal bank accounts, not business/commercial bank accounts.
Caption: If you did not protect your business account from fraud and cyber attacks, this could be you.
Unfortunately, business owners, especially small business owners, usually assume that their business bank accounts are protected in the same way their personal accounts are. Not so. According to an article in the New York Times, “Provided banks can show adequate security procedures, they have no legal obligation to reimburse businesses for attacks, as federal regulations do not cover commercial accounts.”
What that means is you MUST search your bank’s fraud and IT security measures and see what level of protection they provide. You must take action to ensure the money in your account does not magically disappear one day. The good news is rarely does this type of breach occur. But rarely, is not never, so take precautions.
To read more on the subject, read the NYT article, A Win for Small Businesses in a Bank Fraud Case.”