Electronic Payment Fraud: When Is Your Institution Liable?

Compliance Frontline & New Accounts Human Resources Information Technology Operations Security & Fraud

On-Demand Webinar

StreamedOct 30, 2024Duration90 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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Liability. No institution wants it, but all are at risk.

One risk area that has exploded in recent years involves electronic payment fraud – and both ODFIs and RDFIs are experiencing the fallout. ACH fraud can involve consumer or commercial accounts. Do you know which regulations apply to each? What are the return deadlines? What are your institution’s responsibilities to the accountholder? Can you afford to miss this important program?

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

Distinguish between the ODFI’s and RDFI’s liabilities for ACH payment fraud
Explain your institution’s responsibilities when acting as the ODFI versus the RDFI
Define the return deadlines for ACH fraud for consumer and corporate accounts under the Nacha rules
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
Employ new 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 resulted in staggering losses to financial institutions. Liability varies depending on the type of fraud, how it occurred, and whether it was a consumer or commercial account. The assorted 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 ACH 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 tellers, service representatives, compliance officers, auditors, attorneys, managers, and deposit operations staff and officers.

TAKE-AWAY TOOLKIT

Nacha’s indemnification agreement for requesting the return of funds from an 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 institution is prohibited. Print materials may be copied for eligible participants only.

Presented By

Shelli Clarkston