A company has a PC infected with malware that steals the User ID and password for their bank account. The bad guys proceed to steal a large sum of money from the company bank account. The bank won’t refund the money and the FDIC doesn’t insure commercial accounts. This sums up a recent case described at Krebs on Security where an Escrow company had $440,000 stolen from it’s bank account and is now suing the bank claiming inadequate controls for the movement of funds.
The bank probably shouldn’t be offering a single password to govern the approval and release of a wire transfer but are they responsible for protecting an endpoint they had no control over? That’s quite a leap. As a business owner you have to take responsibility for protecting your assets.
Krebs suggests two alternatives for small businesses. I agree with both which I’ll summarize here.
1. Separate your banking PC from your general purpose PC. In other words, don’t access your online bank accounts from the same PC you use to check E-mail, open attachments, browse the Internet, perform work for your clients, etc.
2. Use a Live CD that boots your computer into a version of Linux that is used only to access your online bank accounts.
A third option is to use a virtual guest machine that is purposed specifically for online banking and appropriately configured/updated. (Not a bad idea for personal banking too)
Hopefully, this incident doesn’t lead to a knee-jerk legislative mandate that requires banks to implement vague “effective security measures”, especially those that would require them to effectively manage the endpoint systems of other businesses. Banks could, however, provide option 2 above to their commercial customers to access online banking using a secure, bank branded Linux distribution.
Bottom line – personal responsibility. Don’t rely on other parties to protect your information.
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