Program Overview

Frequently Asked Questions

Q. What is the program limit?

The protection limit up to $1,000,000 per business. Optional limits available.

Q. Is there a deductible?

Yes, an annual aggregate deductible applies. Optional deductibles available.

Q. How at risk are business online banking accounts?

A recent survey by a large regional financial institution discovered 12% of its commercial banking account customers had at least 1 instance of malware running on a computer with access to the online banking system. Business account takeover is a big business and the threats continue to evolve to defeat the latest defenses.

Q. If a financial institution requires safe online practices, does it still need to be in the EFT Guard Program?

Yes! Adoption of financial institution controls and security conscious online activity is not a guarantee that account takeover will not occur. EFT Guard provides peace of mind and protection that your financial institution alone does not.

Q. Is employee theft and the physical theft of data covered?

No. Any fraudulent activity committed by any owner, officer, director or employee of the business is not covered.

Q. Doesn't the FDIC provide some level of protection against fraud committed against business accounts?

No. The FDIC is an insurance fund that protects consumers and businesses against financial institution failure. The FDIC will not reimburse you or your business accountholders for online fraud losses.

Case Study

IT Firm Loses $100,000 to Online Bank Fraud:

"A New Hampshire-based IT consultancy lost nearly $100,000 after thieves broke into the company's bank accounts with the help of 10 co-conspirators across the U.S.

Hudson, N.H. based Cynxsure LLC received a voicemail message from its bank, Swift Financial, a Wilmington, Delaware institution that focuses on offering financial services to small businesses. The message said to contact the bank to discuss an automated clearing house (ACH) payment batch that had been posted to Cynxsure's account. The next day, Cynxsure's owner Keith Wolters returned the call and learned from Swift that someone had put through an unauthorized batch of ACH transfers totaling $96,419.30.

The batch payment effectively added 10 new individuals to the company's payroll, sending each slightly less than $10,000. None of the individuals had any prior business or association with Cynxsure."