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? 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.
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
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
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.
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.
MEET THE PRESENTER
Elizabeth Fast, JD, CPA, Spencer Fane LLP
Elizabeth Fast is a partner with Spencer Fane LLP where she specializes in the representation of financial institutions. Elizabeth is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions.
THREE REGISTRATION OPTIONS – WHAT YOU GET
1. LIVE WEBINAR
- Unlimited live connections with shareable access within your institution
- Available to view on desktop, mobile & tablet devices
- Take-away toolkit
- Live Q&A session & the presenter's contact info for follow-up questions
- Access the webinar training from your User Portal
2. ON-DEMAND WEBINAR
- Unlimited and shareable access to the recording within your institution,
starting two business days after the live date
- Available to view 24/7 on desktop, mobile & tablet devices
- Take-away toolkit
- Ability to download the webinar video and toolkit items
- Presenter's contact info for follow-up questions
- Access the webinar training from your User Portal
3. BUNDLE & SAVE
- Save when you Bundle the Live + On-Demand Webinar Registration
- Includes all the items listed above
- Full registration descriptions can be found here