6 Questions to Ask Your Bank to Safeguard Your Assets

It's no secret that there are risks inherent with online and mobile banking. Account holders and banks must share the responsibility of defending against fraudsters. Account holders should be careful when banking online and proactively check their balance for irregular activity or missing funds. Banks are doing a lot behind the scenes to protect account holders, so it's important to understand what your bank is doing to protect you. Here are some questions to ask your bank:

1) What security practices do you have in place? The standard practice for online banking security is to offer multi-factor authentication, which is proven to be defeated by cybercriminals through hacking, phishing and other means. The good news is that in January 2012, banks are expected to meet guidelines set forth by the FFIEC that require layered security strategies that include the ability to detect and respond to suspicious behavior that is often signals a fraudster has access to your account. Ask your bank what it's doing beyond multi-factor authentication to detect and prevent fraud.

2) Do you have account holder behavioral monitoring tools to detect suspicious behavior? Behavioral monitoring of individual accounts is proven to be the most effective way to catch fraudulent activity before criminals can make a transfer. Ask your bank if they are using a behavioral monitoring tool like Guardian Analytics FraudMAP Online to detect anomalous activity.

3) What is the reimbursement policy in my banking contract? Business accounts are not protected by law from fraud in the same way that consumers are. Regulation E requires banks to reimburse their consumer accounts but that does not apply to business accounts. Since banks aren't required to pay back businesses like they are consumers, it's imperative to find out their reimbursement policy and understand your rights should you fall victim.

4) What is your fraud notification policy? Will they notify you right away, a day later, a week, a month? Ask your bank what its protocol is for letting you know when fraud has been attempted or executed. Also ask if they have a standard window to report fraud if you notice it first. If the answer makes you raise an eyebrow, it might be worth considering switching to an institution with more immediate notification policies.

5) What security best practices am I responsible for? When you open a business bank account, you are required to sign an agreement with your bank, and in that agreement, there should be details on the security best practices that are expected of you (e.g. anti-virus software on all computers). Go over this section of your contract carefully, and if there are any unreasonable expectations, flag them with your bank representative and be sure you have a good understanding of what responsibilities they are placing on you.

6) Under what situations would you ask for my private credentials? Many times fraudsters make their way into online accounts through convincing methods such as phishing emails that ask for personal details, such as passwords or account numbers. Ask your bank what its policy is so if you receive an email, phone call or other communication from your bank asking for credentials, you'll know when a fraudster is on the other end.