Is Your Business Bank Account and Your Money Safe?

by Kenneth Hoffman in

Do you have a business account at a small local bank, or even a large bank? Did you know that business bank accounts do not carry the same protections as a personal bank account if funds are stolen or your account is hacked.

Even worse, owners often assume incorrectly that the protection they have on personal bank accounts applies to their business accounts. Many are shocked to learn that most banks do not take responsibility for unauthorized debits from business accounts. Unless the owners have fraud insurance, they must shoulder the losses alone.

A recent New York Times article Owners May Not Be Covered When Hackers Wipe Out A Business Bank Accout, points out how bank customers can be out hundreds-of-thousands of dollars with no recourse against the bank.

But money stolen the previous four days was gone for good. Mr. Patterson took his bank to court and lost. “This hurt a lot. If we hadn’t always been very conservative financially, it could have put us out of business,” he said. “Our legal fees are not recoverable either.”

The article offers advice and tips on how to protect yourself and your money. It is well worth reading.

K.R. Hoffman & Co., LLC, counsels Entrepreneurs, Professionals and Select Individuals in taking control of their taxes, and businesses. Discover how we can help you overcome your tax and business challenges. For more information or to become a client, call me at (954) 591-8290 TODAY or drop me a note.