CyberCrime? Banks May Not Protect You

If you’re a small business — maybe a sole proprietor — your bank account is at risk for cyberfraud and the bank may have no obligation to protect you. In specific cases, this brings up interesting (and hard) problems about responsibility. It also raises interesting questions about corporate personhood. Why is an individual human more worthy of protection than an individual human who has incorporated? >>>

LINK: When Cyber Fraud Hits Businesses, Banks May Not Offer Protection (by John Ydstie for NPR)

Cyberthieves steal hundreds of millions of dollars a year from the bank accounts of U.S. businesses. And many business owners are surprised to find out their bank is not obliged to make them whole….

…Individuals are pretty well-protected when it comes to fraudulent transfers from their bank accounts. Regulation E of the Electronic Fund Transfer Act requires banks to bear the burden in most circumstances. That’s not the case for small businesses, even if they’re owned by a single person….

What do you think?

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