A number of banks are reporting that their customers’ emails have been hacked. Hacking can trigger a chain of events aimed at defrauding financial institutions. The most effective precaution your bank can take is to completely and consistently follow best practices. The following story illustrates why.
Bank XYZ receives an email that appears to be from its good customer. The email instructs the bank to wire funds to a beneficiary in a foreign country. An employee at Bank XYZ, relying on the email alone for authorization, wires the funds according to the instructions in the email.
What went wrong in this example? The good customer’s email had been hacked. The emailed wire request was sent by a fraudster in a distant country, and the funds are long gone by now.
And because the employee at Bank XYZ failed to call the customer to confirm the originator’s identity, it’s Bank XYZ that suffered the loss.
Unfortunately, U.S. financial institutions have incurred large financial losses as a result of this type of fraud. We urge you stress the importance of always making a call-back to your customer to verify any faxed or emailed wire transfer request before releasing payment. Whether your bank uses passwords or PINs to verify the identity of customers, following this step without exception will help safeguard both your customer and your bank.
In a paper dated January 13, 2015, the Office of the Comptroller of the Currency explores the potential benefits of collaboration among smaller banks seeking to compete and succeed in a challenging environment.
The paper, “An Opportunity for Community Banks: Working Together Collaboratively,” looks at numerous collaborative models and their potential for alleviating some of the challenges commonly faced by community banks today. It also provides examples of specific approaches, functional areas, and oversight concerns worthy of consideration.
If your bank saw more consumer international payments activity in 2014 than in the past, we’ve got one word for you: Congratulations! Because in all likelihood, your bank grew in other areas, too.
Happily, you needn’t be concerned about exceeding the “safe harbor” threshold of 100 remittance transfers per year set by the Consumer Financial Protection Bureau’s Final Rules amending Regulation E. Bankers’ Bank of the West offers a turnkey solution for consumer international payments that supports compliance with Dodd-Frank Regulation E requirements.
Our solution enables your bank to issue the sender a combined disclosure and receipt once the payment is completed. What’s more, it’s a quick, convenient, and cost-effective way of meeting the needs of your customers in an age of changing demographics.
So celebrate your success. And as you prepare for another year of growth, reach out to our operations specialists (firstname.lastname@example.org or 800-873-4722) to find out more about the quick, convenient and cost-effective turnkey consumer international wire transfer and ACH solutions available through Bankers’ Bank of the West.
In the financial services industry, strong risk-management controls are non-negotiable. When it comes to following your internal rules, policies and procedures, your bank is only as strong as its weakest link. It remains true that while the potential for human error might be slight, it can’t be eliminated altogether.
Seeing the importance of reducing risk, many banks are fortifying their ACH risk management efforts with automated tools. The best automated solutions will not only reduce the potential for inconsistency and human error but also help ensure regulatory compliance.
The automated ACH risk management solution available through BIDS is comprehensive. It features:
✓ Real-time notification of limit exceptions.
✓ Detailed information about transactions.
✓ Integration with your current transaction and reporting platform.
✓ Ability to set a daily limit for the dollar value transactions of a single customer.
✓ Ability to limit origination by specific Standard Entry Class (SEC).
✓ Monitoring of daily ACH return activity.
✓ Monitoring of multiple originators.
✓ Ability to set and monitor credit and debit caps at company level.
✓ Access to ACH monitoring information for people you authorize.
What’s more, the BIDS ACH risk management solution is priced lower than that of the most prevalent competitor—and it’s backed by personalized customer support from BBW. For more information about BIDS’ ACH risk management solution, contact your cash management officer or email email@example.com.