Protect Your Business Bank Account From Theft

Cyber criminals are targeting small business bank accounts with increasingly sophisticated attacks.  Here are five tips to protect your business bank account from theft:

Protect your online environment

Cybercriminals use many strategies to obtain your online login credentials to your business accounts which allow them to transfer from funds from the accounts and steal private information.  This type of fraud is known as a “corporate account takeover”.  Here are some steps to protect your online environment:

• Turn on multi-factor authentication for your bank account
• Do not share your online login credentials via unencrypted email
• Use complex passwords and change them periodically. 

Partner with your bank to prevent unauthorized transactions

Your bank may offer fraud security services such as check monitoring, check protection services, and ACH debit block services.  These services may be free of charge.  Talk to your bank to see if they offer any programs to safeguard your bank account.  These programs may be free of charge depending on your bank and the type of bank account that you have.

Pay attention to suspicious activity and react quickly

If unusual activity seems to be occurring, contact your financial institution immediately.

Consider using multiple accounts spread across multiple banks 

In the event of cybercriminal activities, having money spread out across multiple banks may limit the theft to only one bank account. For example, it may make sense to have more than one bank account used as follows:

• Operating account.  This account is used for day-to-day operations.  The balance maintained in the account should be sufficient to cover day-to-day operations, but an excessive amount of funds should not be kept in the account.
• Payroll account.  This bank account is used only for payment of paychecks and payroll taxes.  A payroll account becomes even more important if the business issues a lot of payroll checks to employees instead of direct deposit.  The balance maintained in the bank account should be sufficient to cover all payroll liabilities. 
• Savings account.  Consider keeping cash reserves in a separate bank account.  This account should have minimal activity. 

To learn more about how to protect your business bank account from theft, please contact our office.