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Risks of Business vs. Personal Bank Accounts

Many consumer protections regardig fraudulent transactions from bank accounts might not apply to a business account, even if you are a small business or sole proprietor.

With the increased incidents of cyber-crime, including phishing schemes where criminals try to trick users into providing the account information and passwords, businesses needs to be particularly careful. In several recent incidents, businesses have been targeted by speak-phishing, phishing schemes that specifically target small businesses. Such businesses are being targeted because they are more likely to make large transactions, meaning that large transfers from their acounts may be less likely flagged by a bank.

While banks in the US will often reimburse consumers for such losses, they are less likely to accept responsibility for the loss to a business account. If you are a sole proprietor, this means that you may be accepting additional risk of loss when you use a business account instead of a personal account (even though there may be other advantages to keeping you business and personal life separate). If you use business accounts (whether you are a small corporation or a sole proprietor) it is thus to your advantage to take extra precautions to protect those accounts.