Technology Increases Business Account Vulnerability
As small businesses continue to increase their use of technology and mobile access to conduct transactions, the drawback is the shift may potentially widen the space for cyber thieves to strike and drain commercial accounts in one fell swoop.
While consumers have stronger shields to protect their account under Federal Reserve Regulation E, which mandates that banks are required to provide reimbursement for certain fraud losses, that same protection does not apply to business and commercial accounts.
Some of the most common vulnerabilities seen include compromised or weak passwords, malware or virus infected PCs, data stolen from employees, account credential sharing, no internal audit or procedures to minimize the effect of a rogue administrator as well as data leakage when data is extracted and leveraged off premise, said Jon Freeman, president/CEO of Mycroft, a New York-based provider of IT security, identity, access management and regulatory compliance services.
When asked if credit unions and other financial institutions can expect business account breaches to increase, Freeman said unfortunately, yes.