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#1202746 - 06/17/09 06:08 PM Fraudulent wire transfer from internet banking...
1995Banker Offline
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Please help...We offer a "cash management" online banking product in which the cash management customer can initiate wire transfers on thier account from their computer. We have had what appears to be a breach in a customer's account (from an external site) and several wires were initiated from the account and sent to the benefit of other bank accounts. What recourse do we have? We are requesting these wires be returned and a receiving bank representative stated if the wire was fraudelent, a bank was required by law to return the wire. Can anyone please shed some light on this asap? We've never dealt with this issue before. Thanks so much!

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eBanking / Technology
#1202949 - 06/17/09 08:15 PM Re: Fraudulent wire transfer from internet banking... 1995Banker
rlcarey Online
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rlcarey
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Galveston, TX
We are requesting these wires be returned and a receiving bank representative stated if the wire was fraudelent, a bank was required by law to return the wire.

A wire is final on acceptance by the receiving financial institution. There is no obligation to return any of these wires. Some banks will return money on a voluntary basis, but the customer that received the funds has to agree.

You need to examine the security procedures that were used to access the customer's account, figure out where the breakdown occurred, analyse your cash managemnt agreeements for how losses like this are to be allocated and call your attorney. This is going to be between you and your customer if you don't get the money back.
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#1203072 - 06/17/09 09:42 PM Re: Fraudulent wire transfer from internet banking... rlcarey
WonderWoman Offline
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gone fishin'
It would be interesting to know how this happened. If there is a scam out there we can notify our customers about .....
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#1203105 - 06/17/09 11:25 PM Re: Fraudulent wire transfer from internet banking... WonderWoman
'Lil Freak! Offline
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The psych ward
Often times it’s key logging software. The tough part is making sure your customer base obtains appropriate anti-virus software and keep it updated.
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#1203113 - 06/18/09 12:05 AM Re: Fraudulent wire transfer from internet banking... 'Lil Freak!
rlcarey Online
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rlcarey
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Galveston, TX
But then again, that goes back to the strength your agreement/contract with your customers. That should be spelled out the responsibility placed squarely on the shoulders of the customer.
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#1203532 - 06/18/09 03:46 PM Re: Fraudulent wire transfer from internet banking... rlcarey
HappyGilmore Offline
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Pulling people out of the ditc...
You can certainly let the banks that received the wires know that your customers system was breached and that they will be filing charges and looking to come after the recipients; I have done this in the past and it sometimes worked, sometimes didn't. Contact each bank that received wires directly and ask to speak to their security officer. Let them know what happened, and most will work with you. Ultimately, as Randy said, iot is down to you and your customer, strength of contract, and what multi-factor device they were using and how old their PC security software is...
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