"There are millions of small business owners who have absolutely no clue how vulnerable they are and who they're up against," says internet security journalist Brian Krebs in his latest article in a series about the dangers of small businesses banking online.
The many protections offered to consumers against purchases made through online banking fraud are not offered to small businesses; a fact that many small business owners are unaware of. Efficient Services Escrow Group, an escrow firm located in California, learned this lesson the hard way after $1.5 million was stolen from the company via fraudulent overseas wire transfers. Unable to recover the funds, Efficient Services Escrow Group was forced to shut down and is now suing its former financial institution, First Foundation Bank; stating that the bank's lack of follow-through on security procedures makes them liable for the company's losses.
While it is important for small businesses to safe guard against potential online banking fraud, financial institutions can do their part by performing regular IT risk assessments. The financial institutions consultants at Skoda Minotti provide assessments and practical recommendations that can help banks protect themselves and their customers.
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