5 Ways to Protect Your Small Business from Account Fraud

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Corporate account takeover is a form of fraud in which criminals access a company’s financial accounts to carry out unauthorized activities. Corporate account takeover is a type of fraud. Criminals gain access to a company’s financial accounts without permission. They can transfer funds, add fake employees, and steal customer data.

Retrieving the stolen data can be difficult. F&M Bank recommends following these tips to keep your small business safe.

Corporate account takeover is when thieves steal money and information from a business without permission. They can transfer funds, add fake employees to payroll, and take customer information that may be lost forever. F&M Bank recommends following these tips to keep your small business safe.

1.   Educate your employees. You and your employees are the first line of defense against corporate account takeover. Having a strong security program to protect your company and customers is important. Educating employees about warning signs, safe practices, and how to respond to a suspected takeover is also crucial.

2.   Protect your online environment. Protecting your cyber environment is just as important as protecting your cash and physical location.

Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically.

3.   Partner with your bank to prevent unauthorized transactions. Talk to your banker about programs that safeguard you from unauthorized transactions. Protect yourself from fraud by using services like Positive Pay. These services offer call backs, device authentication, multi-person approval processes, and batch limits.

These features help to ensure the security of your transactions and protect you from potential fraud. By utilizing these tools, you can safeguard your finances and prevent unauthorized access to your accounts.

4.   Pay attention to suspicious activity and react quickly. Look out for unexplained account or network activity, pop ups, and suspicious emails. If you detect any issues, contact your financial institution right away. Stop all online activity and remove any compromised systems. Keep records of what happened.

5.   Understand your responsibilities and liabilities. The account agreement with your bank will outline the commercially reasonable security measures your business must have.

It is critical that you understand and implement the security safeguards in the agreement. If you don’t, you could be liable for losses resulting from a takeover. Talk to your banker if you have any questions about your responsibilities.

For additional information, give us a call or email us; we will be happy to help. You can also visit the following websites to learn more about how to protect your small business:

•   U.S. Chamber of Commerce: Internet Security Essentials for Business

•   Federal Communications Commission: 10 Cybersecurity Strategies for Small Business

•   Better Business Bureau: Data Security Made Simpler 

•   NACHA – The Electronic Payments Association Corporate Account Takeover Resource Center

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7 Ways to Spread Holiday Cheer Without Stretching Your Savings

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The American Bankers’ Association (ABA) offers consumer spending tips for the holiday season

December 11, 2014

The American Bankers’ Association (ABA) offers consumer spending tips for the holiday season

With consumer sentiment the highest it’s been since the recession, shoppers are expected to open their wallets a bit wider this year. Will holiday spending leave shoppers in the red?   Not if they plan wisely and use some common sense tips from the American Bankers Association.

“This is the most festive time of year, but consumers don’t have to end up with a holiday hangover when the bills arrive,” said Gov. Frank Keating, CEO of the American Bankers Association. “Simple planning can make the season more care-free and enjoyable when you know you’re in control of your budget.”

To help consumers spend within their means and enjoy a financially happy New Year, the American Bankers Association offers the following tips:

  • Develop a budget. Before you start shopping, develop a realistic budget. Consider your income, subtract your normal monthly expenses, and then add any savings to whatever cash is left over. If you need to use your credit card, think about what you can afford to pay back in January.  Don’t forget costs beyond gifts, like postage, gift wrap, decorations, greeting cards, food, travel and charitable contributions.
  • Make a list and check it twice. Keep your gift list limited to family and close friends, noting how much you want to spend on each.
  • Spend carefully. Avoid shopping while rushed or under pressure, which can lead to overspending.  Make sure to comparison shop online first, or download an “app” that lets you compare prices before you buy anything in a store.  Before you head to the cashier (or online “checkout”), make sure your purchase is within the budget you set.
  • Avoid traps. Finding a spectacular sale on something you’ve been wanting can easily throw you off course.  Stay strong and stick to your budget.  And don’t apply for store credit cards you don’t need just to get a one-time discount.
  • Use credit wisely. Limit the use of credit for holiday spending.  If you must use credit, use only one card, preferably the one with the lowest interest rate, and leave the rest at home.  Pick a date when you can pay off your holiday credit card bills, and commit to paying off the balance by that time.  Be sure to check statements for unauthorized charges and report them immediately.
  • Save your receipts. Not only will you need them for possible returns, you’ll need them to keep track of what you’ve spent and to compare with your credit card statement.  Knowing how much you spent will help you plan for next year, too.
  • Be creative. Consider simple, hand-made gifts instead of store-bought ones.  Send greeting cards or handwritten notes of appreciation for those outside of your list.  Home-baked goods, simple crafts or hand-made gift certificates for your time or talents are often less expensive and more appreciated that what you would buy at a mall or big-box store.

Banks are committed to helping consumers responsibly handle credit and save for the future.  Many offer savings plans such as F&M Bank’s Christmas Club that let you set aside money throughout the year for your holiday spending.  If you don’t have one already, make it a New Year’s resolution to open a savings account for next year!

The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $14 trillion banking industry and its two million employees.  Learn more at aba.com.