This month’s guest post is courtesy of Theresa Payton, the Chief Advisor and CEO of Fortalice, LLC.
Have you ever had your credit card company reverse a charge on your card because it was not you? Sounds reassuring, right? Well, if you are a business owner, those same protections do not extend to you. Cybercriminals know this! Business owners are a prime target of cybercriminals. The cybercriminals target your business using hundreds of thousands of computers in their control, often called bots, short for robots.
It is a business owner’s worst nightmare – Imagine logging into your business banking account to make your payroll and the balance is zero. Unlike your personal card or bank account which are protected under a law known as Regulation E, many people do not realize that banks are not always held liable.
WHAT YOU SHOULD KNOW:
ASSUME YOU ARE EXPOSED: You may not be protected-These attacks are exposing something little known in the business world. Those protections you have when your personal card is used by a fraudster or when someone steals money out of your personal account fall under the protections of Regulation E (electronic funds transfer) and they do not transfer to business accounts.
FINANCIAL RUIN: Devastating consequences – one firm in NY is facing bankruptcy because thieves stole more than $160K from the company by hiding behind a computer virus and their bank says they are not liable
STAGGERING STATISTICS: The Ponemon Institute and Guardian Analytics conducted a survey with over 500 executives and owners of Small-Medium Size Businesses across the United States. As of March, 2010, here are the stats:
4 TIPS TO P.A.D.LOCK YOUR ACCOUNTS:
What to do if you think you are a victim:
First Step-Call Your Bank: Contact your bank immediately to see if they can reverse the transactions.
Notify Local Law Enforcement: Contact local law enforcement to file a report
Contact the FBI: Contract the FBI to report the internet fraud. You can reach them via http://www.ic3.gov/default.aspx which is their Internet Complaint Center.
Creditors: Contact all of your creditors and notify them of the issue.
Keep a log: Keep detailed notes and records of everyone that you notify
If you want to learn more about Consumer Protections, look up Regulation E, also known as the Electronic Funds Act: http://www.fdic.gov/regulations/laws/rules/6500-1350.html
Theresa Payton is the Chief Advisor and CEO of Fortalice LLC. Fortalice provides security, risk and fraud consulting services to small to large companies and the government. She also hosts a weekly segment on Charlotte’s WBTV CBS station called “Protecting Your Cyberturf” with audio and webnotes posted at WBTV.com. For more information or to contact her, visit her company’s website at www.FortaliceLLC.com.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.