A Corporate account takeover is a highly advanced type of fraud, perpetrated on the internet. Cyber thieves actually gain access to a business’ finances and proceed to make unauthorized transactions. Some unauthorized transactions, include transferring funds, creating and adding fake employees to payroll, and stealing sensitive customer information, that may not be recoverable.
There are too many businesses that have been victims of corporate account takeover in Georgia, with losses that have ranged from a few thousand to several million dollars.
Consumer bank accounts do have a certain level of beneficial protection which business bank accounts do not. Under Regulation E, there are liability limits for unauthorized electronic fund transfers affecting consumer bank accounts. But business bank accounts do not have this kind of protection. So when business accounts are perpetrated, 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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