Businesses Hit by Fraud, Moving their Business
Businesses are getting hit hard by online fraudsters and they’re moving their business because of it, according to a new report.
The 2011 Business Banking Trust Study by the Ponemon Institute of Traverse City, Mich., in partnership with Guardian Analytics of Los Altos, Calif., gathered information from 533 executives and owners of U.S. businesses in February.
The study found that 56% had experienced fraud in the past 12 months and 61% of them said they had been victimized more than once. Online account takeover or fraud accounted for 75% of the incidents.
The report also said that 78% of the time, banks failed to catch fraud involving fund transfers or information identity theft, and that stolen funds were recovered for only 10% of the businesses.
In the rest of the cases, banks took the losses 37% of the time and reimbursed the businesses, the report said, adding that 70% felt their banks should be ultimately responsible for securing online accounts.
Meanwhile, 43% said they moved business elsewhere after being victimized by fraud, including 10% who completely terminated their relationships. The rest moved primary cash management services, the report said.