Do Not Trust Banks

It is worse than you think.

“People think everything is safe in banking online,

when it’s really not.”

Most small business owners have no clue

about the threats they face

or the liability they assume

when banking online.

Companies that lose money

due to stolen online banking credentials

are almost always on the hook for those losses.

Banks are under no obligation

to reimburse commercial customers victimized by cyber fraud.

"We do not see the error on our side."

Not a banking error.

A critical legal question

that often arises

is whether the thieves compromised the customer’s system

or that of the bank’s.

a ploy by the banks to make us liable for their lack of security.

How the crooks evade security technologies,

how the banks react,

and whether the customers are left holding the (empty) bag

banks are under no legal obligation to reimburse them.

The company hit by the fraud

often goes a month or two without the operating capital.

Banks could do a better job

educating customers about the risks

they face

with banking online,

but that would cause distrust.

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