Ten "Tips" from SOW 2003

by Barbara Hurst, Editor, BANKERS' HOTLINE

Ten "Tips" gleaned from the BANKERS' HOTLINE 9th Annual Security Officers Workshop in Philadelphia September, 2003:

Deposit Agreement
Be careful of going after the wrong person on an overdrawn joint account. Unless you specifically state in your deposit agreement that both are liable, you can only go after the person who wrote the check that created the overdraft.
Mark Hargrave, Esq. - UCC Pre-Workshop

Deposit Agreement
It is best to state in your deposit agreement that a check is considered to be authorized by the customer if the customer voluntarily gives out the account number.
Mark Hargrave, Esq. - UCC Pre-Workshop

Basic Security
When considering and planning for your training subjects and employees, be sure to include your Board of Directors. They also need in-depth security training.
Dana Turner - Basic Security Pre-Workshop

Settle or Fight It In Court
Important factors to consider are the cost of litigation in money, time, disruption, distraction, and adverse publicity versus the cost of possible settlement.
Mark Hargrave, Esq.

Embezzlement - An Escalating Problem
The most successful methods for preventing internal fraud - in order of importance - include:

a positive, fair corporate culture;
insisting that strong internal controls are in place;
conducting initial and continuing background investigations;
requiring regular fraud audits;
training employees about fraud prevention and detection techniques;
reviewing established fraud policies regularly; and
being willing to prosecute offenders.

The most common reason embezzlements are not reported is fear of bad publicity.
Dana Turner, Security Education Specialists

Preparing For A Disaster - NOW!
In a crisis, you must prioritize - don't lose sight of the importance of the priority. Your job is:

protecting people
protecting the facility
protecting the funds
preventing law suits
preventing embarrassment

As for law suits - the most common causes are:

negligent hiring
negligent retention
negligent training
negligent supervision.

J. Branch Walton, USSS(Ret.)

Patriot Act Regulatory Update and SAR Filing
Make sure every one of your new accounts people is trained in the requirements of the Customer Identification Program. This will have an added benefit. With improved intelligence of the potential customer right at account opening, the new accounts person is in a better position to understand that customer's needs, and can then offer other services that are most appropriate.
Peter Djinis, Esq.

As for SAR filing, 31CFR103.18 (2) (iii) says you need to file when "...the transaction has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage..." That means it doesn't have to be money laundering. ANY activity that appears to smack of illegality should be reported on an SAR.
Don Temple, IRS (Ret.)

Robbery Response - Fighting Out Of The Box
Never, never assume that trauma response is not necessary after a robbery. It is necessary - within 24 hours - for the victim, the family, and the co-workers. Know what NOT to say - for instance, do not say:

"At least nobody got hurt."
"It could've been worse."
"Why didn't you give out the dye pack?"
"How much did you give out?"

Brooke Blake, Bank Security Network and Associates

Robbery Response
One of our biggest problems was the lock on the door. Banking offices should have deadbolts that can just be quickly locked and unlocked in addition to a key controlled lock. Having to locate a key to lock or open a door in case of a robbery could make the difference of an arrest outside the office, or a hostage situation inside the office.
Captain Steve Hecker, Norfolk, Nebraska Police Department

Final Tip: Plan on attending the 10th Annual Security Officers Workshop in September, 2004!

Copyright, 2003, BankersOnline. All rights reserved. First published 9/19/03.