A young woman is holding her phone and looking at the screen with a concerned look on her face. She is holding a debit card in her left hand. She is reviewing a suspicious transaction in her account.
Small business owners face threats from multiple fronts. Vigilance and implementing four key cybersecurity steps can significantly reduce your risk of being targeted. — Getty Images/MT Stock Studio

There are more options than ever when it comes to how you pay your expenses and vendors, but there are also plentiful opportunities for fraud. Let's look at how you can protect your small business bank accounts from hackers and what to do if you're a victim of fraud.

What is bank account fraud?

Bank account fraud occurs when hackers illegally steal money from your account, and it's more common than you might think. One report found that 63% of organizations were victims of check fraud, and 30% were victims of Automated Clearing House (ACH) fraud.

Here are the most common types of bank account fraud you should know about:

  • Check fraud: Check fraud involves stealing money by writing illegal checks. Even though the overall use of checks is declining, check fraud is currently on the rise in the U.S. In 2022, check fraud increased by 84% and caused consumers to lose $815 million.
  • ATM skimming: ATM skimming is a type of fraud where thieves attach a device to an ATM to steal your card information. Once they obtain your card number and PIN, they use this information to withdraw money or make purchases.
  • ACH debit fraud: Businesses often rely on ACH transfers, making these transactions vulnerable to fraud. ACH fraud can be committed by stealing your account information, stealing your login information to take over your account, or sending fake invoices for products or services that were never delivered.

Come up with unique passwords for each account and keep track of them using a password manager.

Tips to avoid getting hacked

Hackers are becoming more sophisticated thanks to tools like artificial intelligence and machine learning. The best way to protect your business from these scams is by implementing more robust cybersecurity measures. Here are some tips on how you can avoid being hacked:

  • Choose unique passwords. Many people reuse the same password across multiple accounts, but this jeopardizes all of your accounts. Come up with unique passwords for each account and keep track of them using a password manager.
  • Implement two-factor authentication. Two-factor authentication requires two forms of identification before a user can log in to an account. For example, you'll have to enter your password and a six-digit code that's sent to your phone or email. This makes it harder for hackers to access your account.
  • Update your software regularly. It's tempting to ignore software updates when they pop up, but not updating software programs allows hackers to exploit security holes in the system. Always keep your software up to date and patch it regularly.
  • Use banking apps. Many people don't realize that banking apps are more secure than logging into your business bank account from your laptop. These apps often use security features like encryption and biometric authentication. Just make sure to log out of the app anytime you aren't using it.
  • Regularly monitor your accounts. It's important to regularly monitor your accounts so you can spot the signs of fraud and take action quickly. Many banks offer 24/7 real-time monitoring to check for suspicious activity.

What to do if you spot suspicious or fraudulent activity

There are several warning signs that can indicate fraudulent activity has occurred with your bank account. If you notice unauthorized withdrawals, unauthorized account access, or your debit card transactions are suddenly declined for no reason, you may be a victim of fraud.

If you notice suspicious activity on your business bank account, contact your bank's fraud department immediately to report the transaction. Your bank can freeze your account and take steps to prevent any other illegal activity from occurring.

It's also a good idea to put a fraud alert on your credit report and monitor all your accounts closely. You should also change your passwords and enable two-factor authentication. You can also file a report with the U.S. Federal Trade Commission if necessary.

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