Risk of Online Banking in your Business

The Problem

money-macro-eyeWe’re all used to seeing the various advertisements from banks that tell us that we’re safe using their website for banking. Unfortunately, that only protects personal accounts. That’s right, under federal law, only personal accounts are protected from loss from computer fraud. There is no such protection for business. What about all of the sole proprietors that operate entirely out of their personal checking account? Well, from the reading I’ve done by using it both for personal and business purposes you will lose the protection you would have for just a personal account.

What to do

First of all, don’t co-mingle (combine) your business and personal accounts because you could lose the protection of your personal funds. Next, talk to your bank and learn how your bank protects your business account against computer fraud and what options you have. Third, buy computer fraud coverage. Some policies will include a nominal amount such as $5,000. Raising the limit to $50,000 might cost as little as $75.