Electronic Payment Fraud: When Is Your Institution Liable?
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
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.
TESTIMONIALS
"Shelli spoke slow enough and clear enough to understand."
- Alicia, Central Valley Firefighters Credi Union
Presented By
Spencer Fane LLP
© 2024 FINANCIAL EDUCATION & DEVELOPMENT, INC
