Banking Risks for Business

Recently Brian Krebs, a journalist and investigative reporter, discovered Russian or Ukrainian hackers submitted a false payroll batch to TriSummit Bank under the credentials of Tennessee Electric. While the bank was able to recover about third of the stolen money, Tennessee Electric still incurred a loss of nearly $200,000. Tennessee Electric is now filing suit against TriSummit bank as they had an agreement to verify all outgoing transactions via phone which the bank had failed to do in this case.

In the case of Tennessee Electric it is suspected that malware installed on one of their computers was able to display a phishing website instead of the banks actual website. This allowed the hackers to collect Tennessee Electric's login credentials to the bank.

Another New York Times article details how a construction company was also robbed of over $100,000.

That same article states that, due to lack of federal regulation, business bank accounts do not offer many of the same protections that are offered with personal bank accounts. This lack of regulated protections means that business owners must take extra precautions to secure their banking.

The Times article suggests requiring multiple people to approve every transaction and place limits on ACH (Automated Clearing House) transactions, which are frequently used for direct deposit and automatic payments from checking accounts. They also suggest checking your account balances daily.

Brian Krebs goes further by suggesting that you have a dedicated computer or operating system setup to facilitate a malware free environment when using online banking.

You can read Brian Krebs's article, Online Banking Best Practices for Businesses, here »

We also reccomend that you purchase cyber liability covage for your business.

Please Call us today at 877-506-5061, to obtain a quote on cyber liability coverage.

You may find the original articles below:

Krebs on Security: Tenn. Firm Sues Bank Over $327K Cyberheist

The New York Times: Owners May Not Be Covered When Hackers Wipe Out A Business Bank Account