8 Security Gaps in Commercial Banking and How to Proactively Protect Your Business

In today’s increasingly digital world, fraud is a growing threat. From identity theft to phishing scams, cybercriminals are constantly developing new ways to access your financial information. The good news is that with awareness and simple precautions, you can significantly reduce the risk of becoming a victim.  Here are some key steps you can take to protect your bank accounts from fraud:

1. Use Strong, Unique Passwords – A strong password is your first line of defense.

• Avoid using easily guessed information like birthdays or pet names
• Create long, complex passwords using a mix of letters, numbers, and symbols
• Never reuse the same password across multiple websites—if one password is compromised, others could be at risk

Tip: Use a trusted password manager to generate and store secure passwords.

2. Enable Multi-Factor Authentication (MFA) – Enabling multi-factor authentication adds an extra layer of security by requiring you to verify your identity through a second method—such as a text message or email code—in addition to your password.

3. Monitor Your Bank Accounts Regularly – staying vigilant is one of the most effective ways to detect and prevent fraud before it causes serious damage. Regularly monitoring your business bank accounts helps you catch unauthorized transactions early, respond quickly to suspicious activity, and maintain control over your financial operations. By combining routine oversight with real-time alerts and fraud prevention tools, businesses can significantly reduce their exposure to financial threats.

• Check your bank statements and transaction history frequently
• Enable real-time notifications via SMS or email. These alerts will help keep you informed and allow you to act quickly if you see suspicious activity.
• Utilize fraud prevention services (Positive Pay) to restrict unauthorized debits on your account

4. User Controls – Limit online banking access and establish dual control on payments to reduce the risk of unauthorized or fraudulent activity.

• Ensure that employees have access to only the banking functions they need
• Regularly audit and update user permissions, especially when employees change roles or leave the company
• Define transaction limits based on the role and authority of each user
• Use approval workflows and require dual control for payments. These controls reduce the risk of unauthorized or fraudulent activity.

5. Beware of scams – Businesses often fall victim to scams through a range of sophisticated tactics. Here are some of the most common methods:

• Business Email Compromise (BEC): Scammers impersonate executives or vendors via email, requesting urgent wire transfers or payment updates. These emails are often highly convincing and exploit trust within the organization.
• Invoice Fraud: Fraudsters send fake invoices that appear to come from legitimate suppliers, tricking businesses into paying for goods or services they never received
• Phishing Attacks: Employees are targeted with deceptive emails or links that steal login credentials, granting scammers access to company systems
• Tech Support Scams: Businesses are contacted by fake IT representatives claiming there’s an urgent technical issue, demanding payment for non-existent repairs or services
• Fake Investment Opportunities: Scammers lure businesses into fraudulent schemes promising high returns, only to disappear with the investment
• Payroll Scams: Fraudsters target HR departments, often by pretending to be employees, requesting changes to direct deposit details to reroute paychecks
• Social Engineering: Scammers manipulate employees to reveal confidential information, such as login details or financial data, often through personal interaction
• Overpayment Scams: Scammers “accidentally” overpay for products or services, then ask for a refund. The original payment turns out to be fraudulent

Businesses can protect themselves by implementing robust cybersecurity measures, training employees to recognize scams, verifying payment requests by calling an established phone number, and keeping systems up to date.

6. Email, Website & Device Security – Your digital environment plays a major role in protecting sensitive financial data. Securing your devices, using trusted software, and practicing safe browsing habits are essential steps in defending against cyber threats that target business banking systems.

• Do not email sensitive information like social security numbers or account numbers
• Install antivirus and anti-malware software
• Keep all software, including your operating system and apps, updated
• Avoid using public Wi-Fi for online banking unless you’re connected through a VPN
• Only use official banking apps downloaded from trusted app stores
• When using a browser, ensure the website address begins with https:// and shows a padlock icon in the address bar, this symbol indicates a secure, encrypted connection

7. Don’t Share Personal Information – Fraudsters often rely on social engineering to trick individuals into revealing confidential information. Knowing what your bank will—and won’t—ask for can help you and your team avoid falling victim to these deceptive tactics. Banks will never ask for your PIN, password, or two factor authentication code over the phone or via email. If someone asks for this information, it’s likely a scam.

8. Report Fraud Immediately – Time is critical when it comes to responding to fraud. If you suspect unauthorized activity, acting quickly can help minimize losses and prevent further damage. Knowing how and when to report issues is a key part of your business’s fraud response plan. If you suspect any unauthorized activity or believe your information has been compromised, contact the bank immediately to minimize potential losses.

In an era where digital threats are constantly evolving, safeguarding your business’s financial assets requires more than just reactive measures—it demands a proactive, layered approach to security. Make sure to regularly review your controls, stay informed about emerging threats, and foster a culture of awareness within your organization. Bank account fraud can happen to anyone, but by staying alert and taking proactive steps, you can greatly reduce your risk! Protecting your business from fraud starts with awareness—but it doesn’t end there. Implementing the right tools and controls can make all the difference.

Connect with your Stifel Relationship Team today to assess your current security measures and explore customized solutions that fit your business needs.