Is your bank liable if money is fraudulently taken out of your commercial bank account? It very well may be. While individuals are protected by insurance provided by the Federal Deposit Insurance Corporation, corporate and business accounts are not so protected. Therefore, when cyber-criminals strike your account, your only option may be to look to your bank for restitution.

The critical component of your bank’s liability revolves around the Uniform Commercial Code and its requirement that banks provided “commercially reasonable” security measures. For example, if all that is required to access your bank account online is a user name and a password, this may not be “commercially reasonable” security measures implemented by the bank and the bank may face liability for allowing fraudulent transfers from your account.

While banks may bear some responsibility for money fraudulently removed from your business bank account, the best defense against cyber-criminals is reviewing your bank statements on a monthly basis. If you find a mistake or error in your monthly bank statement and report it to the bank right away, you have put the bank on notice that fraudulent transfers have occurred in your account. While this may not resolve the bank’s liability relative to fraudulent transfers that have already taken place, if such fraudulent transfers occur again, you will have a much stronger case against the bank.

Cyber-criminals are out there, and as we move toward more of an online world the potential for your bank account to be attacked by these individuals only increases. While the bank may be held liable if your account is subjected to fraudulent transfers, the best defense against cyber-criminals is a thorough monthly review of your bank statements.