Internet fraud has grown tremendously and the losses are staggering.
Credit unions face huge liability risks for unauthorized withdrawals
from deposit accounts if a cyber criminal obtains access to a
member’s online security credentials. UCC Article 4A permits the
credit union to shift liability to the commercial member in certain
situations, while Reg E provides more protection for the consumer
member. But in all situations, the law imposes a duty on the credit
union to utilize commercially-reasonable security procedures. This
webinar will explain who is legally liable for various types of Internet
fraud and what your credit union can do to guard against liability in
both commercial and consumer situations.
Credit union liability under Reg E for consumer accounts
Credit union liability under UCC Article 4A for commercial
What constitutes reasonable security procedures?
Special NACHA rules for ACH transactions
Review of FFIEC guidance Supplement to Authentication in an Internet