Thursday, July 1, 2010

5 Tips to Help Prevent Bank Fraud

With the proliferation of online banking, fraudsters have devised clever ways to harvest userID and password information. My prior blog Watch out SMBs for NEW banking fraud!explains how this is done. It is virtually impossible to defend against such malware. However, a few and simple measures can prevent your company from being a fraud victim.

The simplest approach is to train employees not to open suspicious emails. But, how often have we all been tempted to click on that unbelievable offer, or have simply trusted the source. Some of us still remember the “Anna Kournikova” contaminated email that many fell prey to. With the advance of computing tricks, it is likely that sophisticated fraudsters can send you emails using your friend’s addresses.

Here are 5 tips to help you safeguard against such criminals:
1. Designate a computer to access your bank account. Disallow email access and internet surfing on that computer.
2. Check banking activity DAILY, rather than month-end, and reconcile against legitimate disbursements.
3. Ask your bank to set up “dual controls” so that transactions require the approval of 2 people.
4. Use a less common web browser, such as Opera. The less popular a web browser, the less attention it attracts from fraudsters.
5. Establish a daily limit on how much money can be transferred out of your account. This can help protect against sudden large withdrawals.

It is key to remember that NOT all banks offer fraud protection. If you shop with a small regional bank, ask about fraud protection policies. You may consider purchasing insurance coverage for fraud losses.

Remember, it is better to be safe than sorry!

1 comment:

  1. Check this WSJ article for another example targeting small businesses.