Dynamic Business

Don’t keep a record of login IDs and passwords on or near the computer. Also, while many people think having the same password for all login IDs will make them easier to remember, this can make it very easy for a hacker to attack more than one account. Even if not asked to, change passwords regularly. For those who must keep a record, hide it somewhere.

Also remember that if a cheque with forged signatures is paid by the bank, it is the bank’s responsibility, but if an e-banking password is used by someone who shouldn’t have known it, it’s the business owner’s responsibility. Passwords must be kept secret and, when staff leaves, their banking authorities should be changed immediately.

Use and update antivirus and security software. Smaller businesses, and particularly those operating from a home environment, don’t have the luxury of a larger organisation’s IT infrastructure, which many employees (and often employers) take for granted. This is why many online banking attacks have been targeted towards home users and small businesses.

Make sure a computer is secure and that any business information is kept separate from other information on a shared computer. Install antivirus and security software on the computer, and keep it up to date.  Back up business data and applications and keep the backups secure.

Be smart. The best protection is to be smart. The online world is no safer (or more dangerous) than the real world. Just as you wouldn’t give financial information to anyone on the street who asks for it, don’t give it to anyone who emails asking for it. This means not responding to any unsolicited email from banks asking for account details and, in particular, passwords. Even if the email seems legitimate, it’s worth phoning your bank to check. The cost of a phone call is a small price to pay.

Take responsibility. Ultimately, business owners should take responsibility for the security and safety of their banking processes.  Take the time to understand the options and put in place security processes.  For example, the Australian Government website www.staysmartonline.gov.au and the Internet Industry Association website www.security.iia.net.au have a number of resources on online security.

And, of course, sometimes there is no substitute for having that personal contact at the end of the phone with the bank’s client manager.

Electronic banking controls:

• Two company officers to approve all payments/transfers.
• Secure passwords. They should be input without others observing, changed regularly, and never written down.
• Bank reconciliations completed by staff not involved in the payment functions, with bank statements reviewed independently.
• Security arrangements confirmed regularly with the bank.
• Bank authorities of terminated employees removed as soon as they depart.

* Carolyn Patman is a director in business services for accountants and business and financial advisers HLB Mann Judd Sydney.

Selling Safely Online

PayPal has introduced Seller Protection for Australian eBay sellers, meaning sellers no longer have to bear the costs of buyers reversing their payment because of an ‘item not received’ dispute.

“For the first time, Australian eBay sellers will have confidence in knowing they could be protected against losses they’re not responsible for,” says Andrew Pipolo, PayPal Australia managing director.

Sellers who’d like protection need to meet the eligibility criteria, including proof that the item was posted to the correct address.

“Although this type of problem is rare, this new level of protection provides greater confidence when selling on eBay with PayPal,” says Pipolo.

Using Bpay

Over the past 18 months Bpay has noticed an increase in SME billers, and is now developing an SME offering. While it is essentially the same service currently available through a bank’s internet site, it will have a simplified sign-up and evaluation process.

Here’s why some SMEs are turning to Bpay:

• Cash flow. Manually processed payments, or those in transit, can significantly reduce the cash position of a business. Bpay reduces the cost of administration and reconciliation, and eliminates costs associated with tracking dishonoured or returned payments.
• Cleared funds overnight. The proceeds of Bpay payments are deposited into the biller’s nominated account by financial institutions every business banking day—no dishonoured cheques or stopped payments.
• Fee structure. Payments are primarily flat fee transactions so there is no increase based on the amount being paid.
• Customer relations. Consumers can pay bills with a phone call or online.