Electronic Payment Fraud: When Is Your Institution Liable?
June 9, 2022
Live Webinar
DateJun 9, 2022Duration90 minutes
08:00 AM PDT09:00 AM MDT
10:00 AM CDT11:00 AM EDT
- Unlimited connections for your institution
- Available on desktop, mobile & tablet
- Take-away toolkit
- Presenter’s contact info for questions
On-Demand Webinar
- Unlimited and shareable access
two business days after live streaming - Available on desktop, mobile & tablet devices 24/7
- Take-away toolkit
- Ability to download webinar video
- Presenter's contact info for questions
Fraud can (and does) lurk around every corner – and electronic payments are no exception.
Since the
legalities, liabilities, and recovery options vary depending on the situation,
your team needs a firm understanding of the rules and ways to mitigate
losses. This detailed common-sense
webinar is just the ticket.
AFTER
THIS WEBINAR YOU’LL BE ABLE TO:
- Distinguish between the liabilities of the ODFI and RDFI for ACH payment fraud
- Explain your institution’s responsibilities when acting as the ODFI versus the RDFI
- Define the return deadlines for consumer accounts and corporate accounts under the Nacha rules regarding ACH fraud
- Understand how to bring a breach of warranty claim against the ODFI after the return deadlines
- Identify when Reg E conflicts with the Nacha rules and when your institution must reimburse consumer accounts for ACH fraud
- Discover ways to encourage the RDFI to return funds to your institution after the ACH fraud is identified
WEBINAR DETAILS
The tremendous increase in electronic payment fraud
has caused staggering losses to financial institutions. Your institution’s liability for electronic
payment fraud will vary depending on the type of fraud, how it occurred, and
whether it was a consumer or commercial account.
The varying legalities
are mindboggling. UCC Article 4A permits
financial institutions to shift liability to commercial accountholders in
certain situations, while Regulation E provides much more protection to consumers. The Nacha rules make the originating
depository financial institution (ODFI) ultimately liable for an unauthorized
ACH, but it is difficult to get the ODFI to pay after the return
deadlines. In all situations, however,
the law requires financial institutions to use commercially reasonable security
procedures.
This webinar will explain
which party is liable for the various types of electronic payment fraud and
what can be done to protect your institution from liability in both commercial
and consumer situations.
WHO SHOULD ATTEND?
This informative session
will benefit all personnel involved on the deposit side, including deposit operations staff
and officers, tellers, service representatives, compliance officers, auditors,
attorneys, and managers.
TAKE-AWAY TOOLKIT
- Nacha’s Warranty Claims Tool (to help determine whether your institution will be able to recover funds from the ODFI)
- Nacha’s Indemnification Agreement (to assist with requesting the return of funds from the RDFI)
- Employee training log
- Interactive quiz
- PDF of slides and speaker’s contact info for follow-up questions
- Attendance certificate provided to self-report CE credits
Presented By
Spencer Fane LLP
This Webinar Appears In
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