I read an article recently that claimed that most people do not realize that they are not protected from unauthorized withdrawals from accounts where they have enabled online banking.
Think a fraudulent withdrawal of funds to your commercial or business banking account is limited to $50, like a fraudulent credit card transaction? Think you are protected by FDIC insurance? Think again. FDIC insurance does not protect your bank account from fraudulent withdrawals. You have no protection other than attempting to obtain the funds from the criminals that withdrew the funds. You will lose it all and have no recourse.
Because there is no protection for online banking fraud, business bank accounts have become a favorite target. Protecting yourself and your business isn’t an easy task.
- Don’t use your phone for banking
- Don’t use any mobile device for banking
- Never do banking over WIFI
- Never click on a link in a banking related email
- Use only a dedicated computer for banking. That is a computer that is used for no other purpose.
I say it is no easy task because we all want banking to be simple and banks keep making it simpler. But because they are not initiating the transaction, the responsibility rests entirely with you to make sure that all initiated transactions over online banking are legitimate not the banks.