Electronic Payment Fraud: When Is Your Institution Liable?

Collections Compliance Frontline & New Accounts Information Technology Operations Security & Fraud

On-Demand Webinar

StreamedJun 9, 2022Duration90 minutes

Unlimited & shareable access starting two business days after live stream
Available on desktop, mobile & tablet devices 24/7
Take-away toolkit
Ability to download webinar video
Presenter's contact info for questions

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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

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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

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.

Presented By

Elizabeth Fast