DALLAS--(BUSINESS WIRE)--Current banking regulations are a source of financial exposure for small and medium businesses throughout the country. Essentially, the Electronic Transfer Act focuses on consumers and regulates all parties involved in electronic fund transfers. Unfortunately, the Federal Reserve omits protection for companies and covers only individual consumers. If your personal account is compromised the bank is liable, but if your business account is involved it is not. Many banks voluntarily cover the losses of larger accounts which seldom include small businesses.
Recent security breaches of major industry leaders is evidence of the need for advances in cyber protection. In March 2011, RSA, an industry giant in encoding devices, reported a security breach with the theft of internal network information resulting in the need for the replacements and repair of tens of millions of SecurID tokens.
Bill Conner, CEO and president of Entrust, who launched the Business Software Alliance Information Security Governance Task Force, warns against one stop shopping to end all cyber threats. “Companies and governments need to implement digital security technology that is not complicated or cost prohibitive, and whose flexibility better stands the latest cyber threats and those to come,” Conner wrote in his August 18th, 2011, Valley News Group guest editorial in Los Angeles, Cyber Security: The Futility of Finger-pointing.
Small businesses are exceptionally vulnerable without the sophisticated firewalls and other protections their larger counterparts employ. These accounts are unprotected without the guarantee of bank reimbursement after a cyber theft. Reform is needed. Conner is a strong voice urging industry-wide cooperation to strengthen public and private protection for companies of all sizes.
“Throughout history, criminals have been early adopters of new technology, which has made identifying, capturing and neutralizing illegal enterprises a consistent uphill battle,” Conner wrote. In the war against hackers, small businesses may be harmed as targets or as innocent bystanders. Now is the time for much needed industry-wide cooperation in providing protection for those companies that do not have the resources necessary to protect themselves.
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