Stripe Hack Recovery: 15 Essential Steps to Take Now
If your Stripe account has been hacked, don’t panic! You won’t lose the business you’ve spent years (decades) to build.
I help online entrepreneurs respond when their Stripe account gets hacked. Here’s how Stripe accounts get hacked and what to do immediately if your Stripe account has been hacked.
How Hackers Infiltrate Stripe Accounts
I've seen these Stripe breaches happen in two main ways:
The old phishing trick: Someone clicks on a convincing but fake email and boom - hackers have access to their Stripe account. It's a classic, but it still works.
Direct account compromise: Hackers somehow breach the Stripe account itself.
After hackers are in, they start siphoning money out fast, either by charging customer credit cards or using stolen credit card information. The hackers route money from the stolen credit cards to debit cards linked to Stripe Connect, taking advantage of instant payouts. It's like a digital smash-and-grab.
The real kicker? My clients wake up to find their Stripe balance deep in the red - we're talking $40k, $50k, $70k.
And Stripe? They're not exactly sympathetic. Per Stripe’s terms of service, they come knocking, expecting the business to cover every cent of that negative balance. Stripe’s terms of service places the responsibility on the business to cover fraudulent charges.
Shocking, I know.
It's a nightmare, plain and simple.
Here’s what to do if your Stripe account has been hacked.
Here are 16 steps you can take to resolve this Stripe nightmare. Let's walk through them together.
Change your Stripe password immediately. This is crucial to prevent further unauthorized access. Choose a strong, unique password (preferably created through a password manager for maximum strength) that you haven't used elsewhere. This step helps ensure that even if the hacker obtains your previous password, they can no longer access your account.
If you haven't already, enable two-factor authentication. Two-factor authentication adds an extra layer of security to your account. Even if someone has your password, they can't access your account without the second factor (usually a code sent to your phone). This significantly reduces the risk of unauthorized access.
Review your Stripe Connect account for unauthorized debit cards and disconnect any suspicious cards. Hackers often add debit cards to siphon funds quickly. Removing these cards stops the immediate outflow of money. Be thorough in your review, as hackers may have added multiple cards.
Verify that your Stripe API isn't connected to any unauthorized locations. API keys provide programmatic access to your Stripe account. If compromised, they can be used to automate fraudulent transactions. Revoking and regenerating API keys cuts off this potential avenue of attack.
Transfer any remaining funds from your Stripe account to your bank account to prevent Stripe from using that money to offset the negative balance. This action protects your legitimate funds from being used to cover fraudulent transactions. It gives you more control over your money while you resolve the issue with Stripe.
Disconnect your bank account from Stripe to prevent automatic withdrawals for the negative balance. This step prevents Stripe from automatically withdrawing funds to cover the negative balance. It gives you time to dispute fraudulent charges and negotiate with Stripe without risking further financial loss.
Freeze all Stripe payouts. This prevents any pending transfers of funds out of your Stripe account. It can help contain the damage and prevent further loss while investigating and resolving the issue.
Grab a screenshot of your negative balance and download a CSV file of your recent transactions. Identify and document all fraudulent transactions and amounts. This creates a clear record of the fraudulent activity. Detailed documentation will be crucial when reporting to Stripe, law enforcement, and your insurance company.
Contact Stripe support immediately to report the hack and provide details. Quick reporting can help Stripe take action to prevent further fraud. Provide them with all the details you've gathered. The sooner you report, the better your chances of resolving the issue favorably.
Notify affected customers and advise them to contact their credit card companies about the fraudulent charges. This step is crucial for maintaining trust with your customers. It also helps them take action to protect themselves and potentially reverse fraudulent charges, which could reduce your liability.
File a police report with your local law enforcement agency. A police report creates an official record of the crime. This can be important for insurance claims and can help if the case leads to prosecution. It also demonstrates that you're taking the issue seriously.
Consider filing a report with the FBI's Internet Crime Complaint Center (IC3). The FBI tracks cybercrime trends and may investigate large-scale fraud operations. Your report could contribute to a larger investigation and potentially help catch the perpetrators. It’s also helpful to have if your business insurance requires it.
Review your business insurance policies to check if they cover cybersecurity incidents. Some business insurance policies include cybersecurity coverage. If you're covered, this could significantly reduce your financial liability. Even if you're unsure, it's worth checking, as the coverage might be included in a general policy.
Set up an alternative payment processor or merchant account to continue accepting payments. You need to ensure business continuity while resolving issues with Stripe, and setting up an alternative payment method allows you to continue accepting payments and maintain cash flow during this challenging time.
Contact me to help navigate this complex issue. Since I’m experienced in dealing with Stripe hacks, I can help you navigate the complex process more effectively. I can negotiate with Stripe on your behalf and help minimize your financial responsibility for fraudulent transactions.
Swift Action: Your Best Defense Against a Stripe Hack
Realizing your Stripe account has been hacked feels like a punch to the gut and like your business is being taken from you. It's overwhelming, and you might be tempted to freeze up.
Think of these steps as your financial fire extinguisher. The faster you start putting out the flames, the less damage you'll have to deal with later. It's all about protecting your business from further harm.
So take a deep breath, roll up your sleeves, and let's get to work on securing your business.
Don’t panic. We can resolve this together.
