A corporate account takeover is a type of fraud where cyber thieves have been able to gain access to a business’ finances, making unauthorized transactions, including; transferring funds, creating and adding new fake employees to payroll, and even stealing sensitive customer information
There are countless numbers of businesses that have been hacked and fallen victims to this increasing corporate account takeover. These businesses have lost thousands and even millions of dollars.
With consumer bank accounts, they have a certain level of protection that business bank accounts just do not have at this time. Under Regulation E, consumer bank accounts have liability limitations for unauthorized electronic fund transfers. Business bank accounts do not have these types of protection. So when a business has their accounts 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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