The other day we received an email from Bank of America with an alarming subject line prompting any receptive human to open it. Us? We deleted it. Why? Because we donʻt even bank with B of A!!! Weird. Why would Bank of America be sending me critical news about my accounts that I must adhere to forthwith if… when I donʻt even HAVE accounts there. Whew!
Cyber Scams. Theyʻre real. And theyʻre in your inbox. Donʻt get caught like Derrick Jane did when he opened an email from who he thought was from UPS. He clicked on the attachment, which was supposed to be his package information and now he if fighting to keep his Southern California escrow company afloat.
These cyber fraudsters are creating believable email messages with malicious intent, causing unnecessary havoc in innocent lives. The virus Jane inherited through this email that went straight into his computers hard drive snatched all of his online banking passwords etc. and helped itself to hundreds of thousands of dollars via wire transfer.
Owning a small or large business can be tough, what ever your industry may be, especially when it comes to stealth like entrapments from sophisticated spammers. These types of stunts have been targeting corporations, and with increased incidents; thus awareness is now crucial. The Federal Deposit Insurance Corp. says such fraud has resulted in millions of dollars in losses, frayed business relationships, and countless legal battles between banks and businesses.
Smaller companies make particularly favorable targets because they are thought to be with out sophisticated technology, security and/or manpower to keep watch on things or even prosecute. An alarming truth of the matter is banks have little to no incentive to upgrade their online banking security since they’re generally not liable for losses in the case of a breach, as they are with consumer accounts.
James Woodhill, chairman and founder of Washington, D.C.-based Authentify Inc. said that under the 1978, Electronic Funds Transfer Act, banks ARE responsible for keeping consumer accounts safe from online fraud… But no similar laws are on the books for business accounts. "The thinking is, those who are sophisticated enough to manage a business account are sophisticated enough to manage their own security," says Thomas Tauzin, vice president of Capitol Hill Consulting Group.
Thank God that way of thinking is starting to change…
In our broke state of California, a proposed bill would require banks with online banking services to boost security, in part by requiring them to use "out-of-band" verification that uses a channel other than the Web—most typically, the phone—to approve wire transfers.
The federal government is waking up to this issue as well. A proposed bill would extend banks’ liability under the Electronic Funds Transfer Act to include public entities such as schools and municipalities. That would be an important first step for small businesses because it acknowledges that banks share responsibility for fraudulent wire transfers.
Some banks do offer online fraud protection as part of their service package to small businesses; however if your bank doesn’t offer that, major insurance carriers offer protection and we strongly advise you look into that for the sake of your enterprise. Travelers, for instance, combines coverage for electronic funds transfer fraud with coverage for computer fraud. Check with your existing provider or contact an insurance broker immediately, as what is more important than your money?
Jane (which is not his real name; he asked to remain anonymous) is currently in litigation with his bank to seek complete or partial repayment for this nightmare.
"I was floored that the bank wasn’t accountable at all," he says. "Once I alerted them, they cut down all communication with me. I couldn’t access the account. They just said, 'I hope you have insurance.'"
Are you kidding me?!?! …Nope. Call your bank today. If theyʻre not your friend, why should you be theirs??
Reduce Your Risks: Tips to Avoid Internet Fraud
Talk to your bank. Especially before opening a new account, ask the bank how it prevents cyber theft and whether it will cover losses for business clients. If yes, ask your banker to sign an agreement to that effect, Tauzin says. "That kind of proactive stance is what will help motivate banks to get serious about cyber theft of their business customers." And as youʻve heard us say over and over…and over in previous posts; “If itʻs not in writing, it didnʻt happen..” So simple. Invite your Bank Representative in your signature party. Itʻll be fun.
Keep tabs on your account. Check your online bank account daily, weekly, monthly; REGULARLY, regardless of whether you performed banking activity. And change your banking passwords on a regular basis. We change ALL of our passwords every 30 days. Excessive. Yes, but secure.
Think before you click. Attachments loaded with malicious software can steal online banking credentials from your computer, weʻre aware of this now. Be cautious about opening ANY attachment(s), clicking on links, or downloading files from an email. Pay attention to VERBIAGE in the body of the message, and more importantly? Know who youʻre doing business with! We consider any and all email from Bank of America to be SPAM! Why? Because we donʻt do ANY business with them!
Confirm that your security software is active and current. At a minimum, your computer should have antivirus and antispyware software and an active firewall. If you suspect your computer is infected, stop shopping, banking, and other online activities that involve user names, passwords, and other sensitive information. In fact, keep your personal life out of your business life. Clear your caches, cookies, and everything else starting from scratch. Set up your company’s computers where certain sites are blocked, especially sites that are prone fore phishing.
This is preventable, consider this your warning!
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