FAXed wire transfer requests

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

ways for whom?

the customer or your employees?

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.

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.

husker - PM me with your work e-address, and I'll go over our procedures with you.

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.