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Internet Fraud Claims: Who is Liable?

Date: July 11, 2013

Time: 3:00pm - 4:30pm

Location: Webinar


TIME: 3:00 pm – 4:30 pm

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.

Continuing Education: Attendance verification for CE credits upon request


  • Credit union liability under Reg E for consumer accounts
  • Credit union liability under UCC Article 4A for commercial accounts
  • What constitutes reasonable security procedures?
  • Special NACHA rules for ACH transactions
  • Review of FFIEC guidance Supplement to Authentication in an Internet Banking Environment
  • Important provisions to include in your contracts
    • One way to guard against Internet fraud claims is to have a well-drafted contract.  You will receive a sample online contract that can be adapted for your credit union.
    • FFIEC guidance Supplement to Authentication in an Internet Banking Environment
    • Electronic training log
    • Quiz you can administer to measure staff learning and a separate answer key


This informative session will be useful to deposit operations personnel and managers, member service representatives, compliance staff, technology personnel, fraud investigators, and auditors.