WIN Magazine - Winter 2013 - (Page 30)
HACKED BANK ACCOUNTS:
BY C. RICHARD PETERSON
sm a l l
bu sinesses, according to Juniper
C om mu n ic at ions, have been hacked. If your computer is hacked and you store, like
most people, all of your user names
and passwords, cyber thieves will
now control all of your services
requiring user names and passwords. Once the hacker has your
information he or she takes on your
identity and goes directly to your
bank account to empty it out.
The bank doesn't know it isn't
you and, by law, isn't responsible for
hackers stealing your money. Within
a year, according to Symantec and
Congressional studies, over 63% of
businesses that are hacked are out
Naturally, when vendors call to tell
you that your check has bounced and
you look online and see all of your
money is gone, you call your friendly
banker. The bank officer proceeds to
tell you the astonishing news that
the bank is not responsible for replacing your hard earned cash under the
U.S. banking laws. Showing sympathy, the officer explains that personal
accounts are protected under Federal
Reserve Regulation E, if the bank is
given timely notice of the theft from
the account. However, for commercial
accounts, there is no Regulation E,
and the bank is legally off the hook.
This is a real world scenario, and
cyber theft is occurring every day
and night. Here are facts you need
* The FBI estimates that $1 billion
was fraudulently transferred from
U.S. bank accounts in 2012 and the
severity of cash stolen is tripling
* According to a study by the insurer
Hartford Steam Boiler, three quarters of these companies did not
recover their stolen cash.
* A study by the software security
firm McAfee found that cyber crime
cost U.S. companies $100 billion in
losses during 2012.
3 0 | v i e w t h i s i s s u e a t | www.aamgawin.org
WHY YOU NEED INSURANCE
Your account was targeted by
the bad guys or randomly hijacked,
and the loss is now yours. How are
you going to pay your employees
on Friday and your creditors? And
what about the rent and a bank loan
repayment coming up soon? The copy
machine leases? And how will you
pay yourself? You can't make this
stuff up. The exposure to a small
business or nonprofit is real, and the
sudden disappearance of cash can
destroy your small enterprise.
Then you remember something about FDIC (Federal Deposit
Insurance Corporation) protection.
That's the solution. The FDIC will
cover your stolen funds, or amounts
up to $250,000 per account. You are
now back in business...or are you?
While the FDIC insurance covers
loss of cash in your account (up to
$250,000 per account), it does so only
if the bank itself goes out of business
or is taken over by the regulators.
This is not the case with your loss,
and the money will not be replaced in
your account. You are on your own.
Table of Contents for the Digital Edition of WIN Magazine - Winter 2013
Disappearing…and Reappearing Risk: What Lies Ahead
An Innovative Solution for Reducing the Debt of College RMI Students
Does Politics Influence Regulatory Forebearance?
Predictive Analytics: The “Black Box” Used by Savvy Insurance Professionals
Just the Facts—On FATCA: Frequently Asked Questions on the Foreign Assets Tax Compliance Act
Your Reputation Matters, Online and Off
New Wholesale Insurance Product Focus: Protection from Hacked Bank Accounts: Protecting Small Business Policyholders
In the WIN-ner’s Circle
Index to Advertisers/ Advertisers.com
WIN Magazine - Winter 2013
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