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#1502785 - 01/31/11 06:46 PM FAXed wire transfer requests
husker14 Offline
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Joined: Aug 2005
Posts: 50
Our bank accepts wire transfer requests via FAX. Our controls included calling the customer to confirm, however, we have found there are ways to circumvent this control. If you accept wire transfer requests, how do validate it is legitimate? We are contemplating using a challnge type question and answer process.

thanks

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#1502811 - 01/31/11 07:17 PM Re: FAXed wire transfer requests husker14
A_G Online
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ways for whom?

the customer or your employees?
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#1502962 - 01/31/11 09:15 PM Re: FAXed wire transfer requests A_G
husker14 Offline
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Joined: Aug 2005
Posts: 50
We have seen criminals sending a virus to customer's pc then loggingon to their phone carriers and updating their phones to forward to another telephone number.

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#1506290 - 02/07/11 09:08 PM Re: FAXed wire transfer requests husker14
derup Offline
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WISCONSIN
We have the customer sign a wire agreement in advance if they wish to process wires via fax. Without a wire agreement, we will accept them, however we perform a callback procedure to the phone number we have listed on file.

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#1506376 - 02/07/11 10:54 PM Re: FAXed wire transfer requests derup
RBanker Offline
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Joined: Jul 2003
Posts: 2,675
Austin Texas
husker - PM me with your work e-address, and I'll go over our procedures with you.
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#1506423 - 02/08/11 02:39 AM Re: FAXed wire transfer requests derup
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Originally Posted By: derup
We have the customer sign a wire agreement in advance if they wish to process wires via fax. Without a wire agreement, we will accept them, however we perform a callback procedure to the phone number we have listed on file.


Without a signed written agreement that clearly establishes commercial reasonable security procedures, any wires sent via orders by fax or phone are going to be a liability of the bank if disputed, regardless of any processes or procedures that the bank may follow. Refer to the UCC-4A for more information. IMHO - In today's environment, a simple call back would probably no longer be deemed commercially reasonable.
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