In my previous post, I reviewed the New York State Department of Financial Services’ (NYDFS) findings and conclusions of survey results of financial institutions and insurers’ programs, costs, and
Continue Reading Letter to New York State Banks and Insurance Companies: New Cybersecurity Regulations Likely (Part 2 of 2)
Bank Security
Letter to New York State Banks and Insurance Companies: New Cybersecurity Regulations Likely (Part 1 of 2)
In reaction to two surveys of more than 150 regulated banking organizations and 43 regulated insurers in New York, the state’s Acting Superintendent of Financial Services issued a letter to…
Continue Reading Letter to New York State Banks and Insurance Companies: New Cybersecurity Regulations Likely (Part 1 of 2)
Bank Security and Wire Transfers: Even Vaulted Systems Can’t Protect All Personal Information
With hackers on the loose, and wire transfers as a place for them to gain unauthorized access to bank accounts, it is no wonder that when it comes to potentially intercepted wires, customers and banks are playing hot potato with who to blame. Typically, banks bear the risk of loss for unauthorized wire transfers. The Electronic Fund Transfer Act (“EFTA”) for consumer accounts and Article 4A of the Uniform Commercial Code (“UCC”) for business accounts, are two entities that govern these transfers. Both have opposing interests considering that the EFTA attempts to shield customers from paying unauthorized charges whereas the UCC has a framework in place that protects the banks and shifts the risk of loss to the customer if the bank can show that (1) a commercially reasonable security procedure was in place and, (2) the bank accepted the payment order in good faith and in compliance with the security procedure and any other written agreement or customer instruction.
Continue Reading Bank Security and Wire Transfers: Even Vaulted Systems Can’t Protect All Personal Information