YesterdayI warned about the dangers to business checking accounts from the tax information hacked from the SC Department of Revenue.
There is concern that armed with the checking account and routing numbers, the thieves might be able to fool your financial institution and directly pull money out much in the same way a credit card company or other vender would be paid. It is my understanding that if this happens, the financial institution would be responsible for replacing the lost funds. (If I’m wrong about the financial institution being libel for this, please contact me.)
However, yesterday I also talked about corporate account takeover. This happens when the thieves target a business based on the financial information they now have (thanks to the Department of Revenue) and manage to infect the business computers with malware. (Think this isn’t easy? Ask the Department of Revenue.)
Scary isn’t it? So what can you do?
The first is inconvenient. Stop using online banking. This might be a solution for some businesses but not all.
Yes, this does exist. One company will provide your business with software to download to hopefully block the account takeover malware. But if this doesn’t work the protection plan provides for fraud loss reimbursement up to $100,000 per checking account and $500,000 per customer. There is no underwriting and no deductible. The price for this protection runs about $200 a year.
The businesses of this state didn’t ask to be put in this position and we certainly didn’t ask to be inconvenienced or have added costs. But here we are.