Program Information


Frequently Asked Questions

Q. What is the program limit?

The maximum protection is $100,000 per business.

Q. Is there a deductible?

Yes, an annual aggregate deductible applies.

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 EFTGuard Program?

Yes! Adoption of financial institution controls and security conscious online activity is not a guarantee that account takeover will not occur. EFTGuard 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. This program does not provide any protection for fraudulent activity that does not occur in the care, custody and control of the business or any fraudulent activity committed by any owner, officer, director or employee of the business.

Q. How is an incident reported for the program?

To report an incident, please call: 888-747-8220 or complete the online incident response form.

Q. If a business does suffer a loss, how quickly will the claim be processed?

Quickly! Once the relevant documentation is provided and the investigation is concluded, the requests for payments will be processed. Assuming that the documentation is in order, the request should be processed within thirty days.

Q. Doesn't the Federal Government's Regulation E provide some level of protection against fraud committed against business accounts?

No. Regulation E protection against electronic online fraud losses is limited solely to the protection of consumer accounts. Business accounts are not explicitly protected by this regulation against fraud losses.

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."