Federal regulations require banks to reimburse consumers for unauthorized transfers from their accounts, says Litan. But there is no corresponding legislation that protects small businesses.
As a banking consumer, this is nice to know. If I had a small business, I wouldn't be too happy.
This issue reminded me of this article in which I mentioned in a previous post regarding online banking fraud. The article described one lawsuit filed against Bank of America by a business owner who had $90K stolen out his online account. Since it was a business account and not a personal account, Bank of America had refused to provide a reimbursement.
It's easy to understand why small businesses have been slow to embrace online banking. Some banks, like Wells Fargo, have extended their theft protection beyond federal requirements. This would be important for me if I were looking for a business account.