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Business Bank Accounts Do Not Have the Same Protection As Personal Bank Accounts

You know how your personal bank account is protected if you lose your debit or credit card as long as you notify the bank within a specific period of time? Well, this same protection occurs if the bank’s accounts are hacked and your money is taken. The bank is responsible, not you. The bad news is, this protection only applies to personal bank accounts, not business/commercial bank accounts.

Businessman_depressed

Caption: If you did not protect your business account from fraud and cyber attacks, this could be you.

Unfortunately, business owners, especially small business owners, usually assume that their business bank accounts are protected in the same way their personal accounts are. Not so. According to an article in the New York Times, “Provided banks can show adequate security procedures, they have no legal obligation to reimburse businesses for attacks, as federal regulations do not cover commercial accounts.”

What that means is you MUST search your bank’s fraud and IT security measures and see what level of protection they provide. You must take action to ensure the money in your account does not magically disappear one day. The good news is rarely does this type of breach occur. But rarely, is not never, so take precautions.

To read more on the subject, read the NYT article, A Win for Small Businesses in a Bank Fraud Case.”

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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