Corporate account takeover is a form of fraud, in which cyber thieves gain access to a business' finances and vital data, to create unauthorized transactions. This could include, transferring funds from the company, creating and adding new fake employees to payroll, and stealing sensitive customer information that may not be recoverable.
Thousands of businesses have fallen prey to corporate account takeover in Atlanta, and their losses have ranged from a few thousand to several million dollars.
With consumer bank accounts, there is a certain level of protection that business bank accounts just do not have. Under Regulation E, there are liability limitations for unauthorized electronic fund transfers, affecting consumer bank accounts. Business bank accounts, unfortunately, do not have this kind of protection. When business accounts are compromised, it often ends in litigation between the financial institution and their customer.
In an effort to protect both consumers and businesses from financial fraud, the Federal Financial Institutions Examination Council (FFIEC) has implemented new security guidelines for financial institutions in January 2012. These guidelines describe the measures financial institutions should take to protect Internet banking customers from online fraud and corporate account takeover.
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