Digital banking makes it easier for small businesses to pay vendors, automate payroll, and transfer funds, but that convenience also creates opportunities for fraud. Here are five ways to protect your business bank accounts from hackers.
Implement strong access controls
If you reuse the same password across multiple accounts, a single breach could expose your entire financial system. For that reason, each banking and payment account should have its own unique password. You can use a password manager to generate and store these passwords securely.
Two-factor authentication adds another layer of protection beyond a password alone. Once this feature is enabled, anyone logging in must provide a second form of verification, like a one-time code sent to your phone or an authenticator app. That way, even if a hacker obtains your login credentials, two-factor authentication makes it much harder for them to access your account.
Keep your devices and connections secure
Coffee shops, airports, and hotels often use open networks that lack strong encryption and make it easier for hackers to intercept your login information. It’s always best to avoid logging into your business bank accounts using these connections. If you have to occasionally use public Wi-Fi, a virtual private network can add an extra layer of protection.
Keeping your operating system and web browser up to date is another simple way to reduce security risks, since updates often contain patches for vulnerabilities that hackers actively target. Every time you delay one of these updates, you’re leaving your network exposed to known weaknesses.
In 2024, human error contributed to roughly 95% of data breaches. But what’s interesting is that just 8% of staff members accounted for 80% of those incidents.
Use the security tools your bank offers
Choosing the right bank can make a big difference in keeping your accounts secure. Here are some security tools and features all banks should offer small businesses:
- Account alerts. Your bank should send you real-time notifications about logins, transfers, and profile changes to help you spot unauthorized activity quickly.
- Transaction limits. Caps on transfers are used for fraud prevention and protect small businesses from unauthorized withdrawals.
- Third-party access management. You should be able to see which apps or services can access your account and remove them easily.
- Device recognition. Banks can flag or block logins from unfamiliar devices automatically.
Train employees to spot payment and phishing scams
In 2024, human error contributed to roughly 95% of data breaches. But what’s interesting is that just 8% of staff members accounted for 80% of those incidents. Training your employees to spot payment and phishing scams doesn’t have to be complicated — it’s about having simple processes employees can follow anytime something feels “off.”
First, establish nonnegotiable verification rules for payments. Employees should know that changes to vendor payment details, banking information, or wire instructions are never handled via email alone. Any request involving money should require verbal confirmation using a known phone number or an existing contact.
You should also teach employees how to handle bank-related emails, since phishing messages often look legitimate. Make it a standard practice for employees to avoid clicking links in banking or payment emails. Instead, they should log in directly through the bank’s official website or mobile app to review any alerts or messages.
Review accounts and permissions monthly
Reviewing your accounts and permissions monthly helps you catch problems early. Start by reviewing all users who currently have access to your business bank accounts. Former employees and contractors should be removed immediately when your professional connection ends, since inactive credentials are a common source of unauthorized access.
You should also check recent login activity and alert settings. Look for unfamiliar devices or locations, and confirm that account alerts are enabled and sent to the appropriate contacts. These routine checks help ensure suspicious activity is detected quickly, when it’s easiest to stop.
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