Northwest Bank offers tips to Small Businesses for Combating Fraud

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posted 10/30/2012 in Community News

Cybercriminals are increasingly targeting small businesses to transfer funds from accounts and steal private information, a fraud referred to as “corporate account takeover.” Criminals use spoofed emails, malicious software and online social networks to obtain login credentials to businesses’ accounts, which they then use to make illicit transactions.

“Small businesses are a growing target for account takeover,” said Greg Post, President & CEO of Northwest Bank. “Yet, a strong partnership with Northwest Bank will give you the tools needed to shield yourself from this attack.”

Combating account takeover is a shared responsibility between businesses and financial institutions. Bankers can explain the safeguards small businesses need and the numerous programs available that help ensure fund transfers, payroll requests and withdrawals are legitimate and accurate. Employees should be trained about safe internet use and the warning signs of this fraud, as they are the first line of defense.

“We’re far more effective at combating account takeover when we combine resources than going at it alone,” said Post.

As part of National Cyber Security Awareness, Northwest Bank offers small businesses these tips to help prevent account takeover:

  • Protect your online environment. It is important to protect your cyber environment just as you would your physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated anti-virus and anti-spyware protection on your computers. Change passwords from the default to something complex, including at point-of-sale terminals.
  • Partner with your bank for payment authentication. Talk to your banker about services that offer call backs, device authentication, multi-person approval processes, batch limits and other tools that help protect you from unauthorized transactions.
  • Pay attention to suspicious activity and react quickly. Put your employees on alert. Look out for strange network activity, do not open suspicious emails and never share account information. If you suspect a problem, disconnect the compromised computer from your network and contact your banker. Keep records of what happened.
  • Understand your responsibilities and liabilities. The account agreement with your financial institution will detail what commercially reasonable security measures are required in your business. It is critical that you understand and implement the security safeguards in the agreement. If you don’t, you could be liable for losses resulting from a takeover. Talk to your banker if you have any questions about your responsibilities.

To learn more, see the American Bankers Association’s Small Business Guide to Corporate Account Takeover (http://www.aba.com/solutions/fraud/pages/corporateaccounttakeoversmallbusiness.aspx).

Northwest Bank is a $1 billion community bank that offers a full line of business, agricultural, mortgage, consumer deposit and lending services as well as wealth management services. Northwest Bank has offices located in Algona, Arnolds Park, Ankeny, Belmond, Estherville, Fort Dodge, Humboldt, Milford, Spencer, Spirit Lake, Storm Lake, West Des Moines, Iowa and Omaha and La Vista, Nebraska.