When it comes to financial management, mobile banking apps are quickly becoming essential tools for small businesses due to their convenience, real-time access, and ease of use. However, as mobile banking grows, so do threats targeting small businesses. Cybercriminals continuously seek vulnerabilities to access and exploit small businesses’ account information. However, there are simple steps every small business owner can take to protect their data, account information, and funds.
Small businesses face numerous mobile banking security threats. Phishing attacks trick employees into providing sensitive information through fraudulent emails, texts, or websites. Malware can infect devices through malicious apps or downloads, compromising a business’s data. Unauthorized access can occur if devices like laptops or cell phones are lost or stolen without proper security measures in place.
Security threats to small businesses include account takeovers, where attackers gain control of banking accounts, and fraudulent transactions, where funds are transferred without authorization. Understanding these risks helps small businesses take proactive steps to protect their financial assets.
1. Use Strong Passwords, Multi-Factor Authentication, and Device Encryption
Strong, unique passwords act as the first line of defense. Passwords should be complex, including uppercase and lowercase letters, numbers, and special characters. Avoid using the same password across multiple accounts.
Multi-factor authentication adds an extra layer of security by requiring more than one form of verification. The most common example is receiving an authentication code via text, email, or through an authentication app. The Federal Trade Commission recommends enabling multi-factor authentication whenever possible because this prevents cybercriminals from accessing your accounts, even if your password is compromised.
Device encryption includes requiring a PIN or passcode to unlock your device and activating biometric safety measures like fingerprint scanning and facial recognition. This ensures data stored on mobile devices remains secure, even if the device is lost or stolen. Verizon also recommends turning on your device’s auto-lock feature to ensure your device locks after a period of inactivity.
2. Regularly Update Software & Apps
Keeping mobile devices and banking apps up to date is crucial. App developers and other tech companies do not only update their applications and platforms for new features and aesthetic changes. These updates often include security patches that fix vulnerabilities. The U.S. Cybersecurity & Infrastructure Security Agency warns that cybercriminals exploit outdated software to gain access to systems. You can protect yourself from these vulnerabilities by installing regular updates or activating automatic updates.
3. Avoid Using Public WiFi
Public WiFi networks in coffee shops, airports, and malls are convenient and useful but can pose significant risks to private information. Hackers can intercept data transmitted over unsecured networks, so if you log in to your bank account while connected to public WiFi, that information can be harvested. The FTC explains that while security measures like encryption have made using public networks safer, it is important to avoid using these networks for sensitive tasks and to have security measures (like strong passwords and multi-factor authentication) in place should your information be stolen.
If you are an on-the-go small business owner and often have to use public WiFi networks, a Virtual Private Network (VPN) is an option. VPNs provide a secure connection even on public networks by encrypting your data, making it difficult for hackers to access.
4. Monitor Account Activity
Monitoring activity is one of the most effective ways to keep your mobile banking accounts safe. Daily or weekly reviews of account balances and transaction history help detect unusual or unauthorized activity early. Small businesses should set up account alerts for transactions, balance changes, and login attempts so you are notified of any strange activity and can lock your accounts and contact your bank. This proactive approach ensures any suspicious activity is addressed promptly.
5. Use Secure Payment Systems
As digital and cashless transactions become the norm, secure payment systems become crucial for small businesses. These payment gateways and processors protect mobile transactions so that your and your customers’ account information is not stolen and used for credit card and payment fraud. The U.S. Chamber of Commerce explains that it is important to have payment systems that comply with industry standards like the Payment Card Industry Data Security Standard to protect this information and your business’s reputation.
6. Educate Employees on Security Practices
Employee emails and phones are an open gateway for cybercriminals to launch phishing scams and other fraud attempts, so it is important to educate your team on keeping company information and data safe, especially if they work remotely and have access to sensitive data. Training programs teach employees to recognize phishing attempts, secure work devices, and protect company accounts.
The Center for Internet Security emphasizes the importance of security awareness training, as more than three-quarters of data breaches involve a human element. Educated employees are less likely to fall victim to scams and more likely to follow best practices for device and account security.
Implementing safety best practices for mobile banking protects small businesses from potential threats. Strong passwords, multi-factor authentication, regular updates, secure networks, account monitoring, secure payment systems, and employee training form a comprehensive security strategy.
The Bank With United mobile banking app and the Bank With United Business app support small businesses by providing secure, user-friendly mobile banking solutions. With built-in security features and dedicated support, companies can manage their finances confidently, knowing their money and accounts are safe.