Tag Archive for: Fraud

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Fake Check Scams Posing as IRA Proceeds

By Dave Oldenburg

Financial institutions have reported incidents where a new or seasoned customer is instructed to open an IRA account, with a fake check, disguised as a rollover. Criminals who orchestrate these crimes hope that front lines staff will be fooled into believing that IRA accounts are not typically associated with fraud. Unfortunately, this type of fake check scam has gained traction and has the potential to inflict substantial losses when not detected early. Although some account holders are aware that they are negotiating a fake check, others do not realize that they are being manipulated as part of a relationship or similar fraud scheme.

How Does the Scam Work?

Similar to other fake check schemes, the purpose is to falsely inflate the balance of an account and withdraw funds as quickly as possible. Funds are often transferred internally, followed by outgoing wires, BillPay, or other electronic payment methods, before the check is returned unpaid.

How Do I Spot a Fake IRA Check Scheme?

It is important to note that criminals generally use accurate information from compromised accounts such as a bank’s ABA, account number, and approximate check range to create and distribute the checks. Some may go further and use convincing check stock, bearing a quality signature of an authorized signer to increase the likelihood that the check will be negotiated.

With that in mind, it’s important to recognize common red flag indicators associated with this type of fraud:

  • The check is made payable to an individual. As a rule of thumb, legitimate Traditional and Roth IRA rollover checks are generally made payable to the financial institution, for benefit of (FBO) the account holder
  • The check doesn’t appear to be drawn on a qualified retirement plan. Many fake checks are drawn on a law firm, cashier’s check or what appears to be a general business operating account.
  • The check is sent directly to the branch by an unknown third party with instructions to deposit the check into a new or existing IRA
  • A memo line with vague instructions to deposit the check into an IRA account
  • The customer seems concerned when funds will be made available
  • The account holder wants to disburse funds shortly after the account was opened

When in doubt, it’s best not to accept the check and follow your bank’s procedures on suspicious account activity.

Oldenburg is a fraud officer, Bank First, Manitowoc and member of the WBA Financial Crimes Committee.

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Identifying and Averting “Festive Fraud”

Bankers emphasize security measures this holiday season

By Rob Foxx, CCBTO

What should be a time of joy and celebration for all can quickly turn into a time of stress and panic. Scams come in many forms — from seemingly innocent to incredibly sophisticated. Knowing these scams and how they work will not only help you defend yourself and your loved ones but assist you in identifying threats to your customers this holiday season.

As technology continues to advance, so too do the number and intricacy of scams we encounter. During the holiday season, consumers are more likely to see a rise in “festive fraud” — or a spike in fraudulent activity associated with holiday shopping.

While porch pirating schemes and fake gift card offers rise during this time of year, bankers should be aware of bad actors attempting to put individuals, businesses, and financial institutions at risk.

Keeping Your Bank Secure

Cybercrime continues to be one of the greatest threats and most expensive forms of fraud to banks across the country. Unfortunately, common schemes can range from phishing or ransomware attacks to identity theft. Schemes which are often disguised as seemingly innocent links or exciting holiday discounts.

Like consumers, banks too face a heightened risk for fraudulent activity at the end of each year. As the holidays quickly approach, bankers should beware that fraudsters not only take advantage of the generosity of the season, but target businesses and offices that may be understaffed. It is critical that individuals remain attentive and leery of unexpected solicitations.

Skepticism is often the first line of defense against bad actors and now’s a great time to ensure every member of your team is prepared for potential threats and that they know how to mitigate the risk. IT professionals and bank leaders should assist all staff members in understanding the various cybercrimes, what they may look like, and how they can impact the bank and its customers.

Make certain that your staff has secure passwords, is using multifactor authentication (MFA), is leery of unknown websites or email addresses, and knows how to report an incident.

In addition, banks should take a moment this holiday season to verify that the organization’s detection methods are properly operating and, in the event of a cyberattack, have a clear response plan. Cyberattacks are most often the result of technological vulnerabilities and human error — make sure your bank is prepared to mitigate this potential risk.

Identifying Consumer Fraud

As fraudulent activity becomes increasingly more difficult to identify, bankers have taken on an important role in educating their customers of, and protecting them from, various schemes.

This holiday season, bankers should advise their customers to be leery of “too good to be true” deals, gift cards from unreputable sellers, urgent or unexpected requests, and fake charities. Consumers and bankers alike should never give out personal information without verifying the legitimacy of the website or person requesting said details.

If a customer reports a fraudulent scam, bankers should not only ensure the individual impacted reports the incident to the local law enforcement, Federal Bureau of Investigation (FBI), and Federal Trade Commission (FTC), but remind them that falling victim to the increasing number of sophisticated fraudsters consumers encounter each day is nothing to be ashamed about.

Foxx is director – infosec and IT audit services for FIPCO, a WBA Gold Associate Member.

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Financial Abuse of the Elderly

According to the Federal Bureau of Investigation (FBI), millions of elderly citizens are targeted annually with some form of financial fraud, and many of these attempts are successful. It has been estimated that seniors lose approximately $3 billion per year as a result of these scams, which are becoming more widespread and sophisticated. Surprisingly, much of the criminal activity is initiated by a friend or family member. A recent study by the University of Southern California revealed that 55% of respondents reporting any type of elder abuse categorized those acts as financial, and that family members were the most alleged perpetrators of elder financial abuse.

With these facts in mind, banks should maintain heightened sensitivity around transactions that involve elderly clients, particularly if these clients have historically managed their own finances and may be exhibiting signs of cognitive decline. Increased vigilance, in general, can assist in uncovering fraud.

Knowing the customer, coupled with a comprehensive employee training program, can act as a strong front-line tactic to help banks prevent and expose elder financial abuse.

Here are some best practices for recognizing “at-risk” clients:

  • Be on the lookout for non-family members being added to banking or investment accounts.
  • Monitor large money transfers and changes in spending patterns, as these could be signs that some form of abuse is occurring. A senior’s spending habits are often predictable in frequency, volume and payees.
  • Be alert for large amounts of funds exiting accounts to payees who had not been previously paid in any manner.
  • Keep detailed notes in the form of dated, journal-type entries, recording any spending or personal behavior that seems unusual. These notes would be in addition to those kept on risk tolerance, goals, objectives, etc.
  • Follow up with clients via phone or email to discuss any sudden financial decisions that seem out of character.
  • In addition to making personal contact, encourage the client to engage an independent attorney to assist in their financial matters.
  • Understand the laws that apply to the financial abuse of an elder client. Follow prescribed protocols if any illegal activity is suspected.
  • Implement internal procedures to elevate circumstances which may present the need for further inquiry and analysis to the appropriate decision-makers.

“It’s important not just to have a system in place to detect elder financial abuse, but to also act on situations where potential fraud or malicious intent has been identified,” said Kristin Roger, vice president and head of financial institutions at Travelers. “We know banks want to serve as trusted advisors to their customers, and by taking simple steps, they can better protect their customers from potential financial harm.”

Elder financial fraud is on the rise and counts as one of the more heinous abuses of trust that senior citizens might endure. Along with the financial damage inflicted on customers, incidents of elder financial fraud can cause serious reputational harm. Therefore, implementing a sound method of prevention, detection, identification and reporting of this criminal behavior is paramount.

Travelers is committed to managing and mitigating risks and exposures, and does so backed by financial stability and a dedicated team — from underwriters to claim professionals – whose mission is to insure and protect a company’s assets. For more information, visit travelers.com.

Travelers is a WBA Associate Member

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The New Face of Identity Theft

The rapid growth of synthetic identity fraud

By Hannah Flanders

Like many aspects of our day-to-day lives, the expansion of technology has both enhanced and complicated the ways in which we operate. As more and more of our information lives online, identity theft — once more likely to occur because of a stolen wallet — has also assumed a digital appearance: synthetic identity theft.

What is Synthetic Identity Fraud?

Synthetic identity fraud is defined as the use of a combination of pieces of personally identifiable information (PII) to fabricate a person or entity in order to commit a dishonest act for personal or financial gain.

This form of identity theft has allowed bad actors to combine a stolen Social Security Number (SSN) and other false information — such as a fake name, address, date of birth, or phone number — to create a counterfeit identity to steal funds, escape prosecution, or any other number of criminal and fraudulent activities.

An Alarming Trend

In 2020, the Federal Bureau of Investigation (FBI) named synthetic identity theft as the fastest growing financial crime in the United States. Fraud targets are often those who do not typically use credit or are less likely to monitor their credit activity — including children, homeless individuals, and the elderly. These victims may find themselves blindsided as fraudsters create a new identity, apply for credit, and after years of building good credit by making payments for a time, abandon the account without paying anything back to the financial institution.

While this type of fraud is already difficult to detect due to its elusive or “normal” nature, many bad actors go to incredible lengths to appear as such, states Forbes. In addition to establishing good credit by making payments quickly and on time, some create digital profiles or use P.O. boxes for addresses.

Not only has technology and access to the dark web made PII more accessible to fraudsters, in 2011 the Social Security Administration (SSA) began randomizing the nine-digit social security codes rather than assigning them to individuals based on their geographical location and group number. No longer do social security numbers raise red flags when enrolling or opening accounts “out of state.”

As online banking grows in popularity, so too do concerns for synthetic identity theft. Between prevalent phishing schemes and heightened risks for data breaches — accessing PII and conducting synthetic identity fraud has become much easier than in years prior.

How to be Proactive Against Bad Actors

Inconsistent categorization and reporting make it difficult to identify and mitigate this type of fraud — as far as banks and credit bureaus can tell, these individuals are just like anyone else. . . until they “bust out” or abandon the maxed-out account with no intention of repayment.

After abandoning the false identity’s account, a fragmented file is created. This additional file not only becomes associated with the original SSN but also holds the additional credit report information and other fabricated PII. Unfortunately, this information could negatively impact the credit rating of the real individual.

When working with customers, bankers should advise frequent credit report checks or freezing unused credit at credit bureaus throughout the U.S. as to deter criminals or catch them early.

In addition, customers may take additional steps to protect themselves and their family against synthetic identity theft. One way parents can protect their children from fraudsters is by requesting their child be added to their credit profile. By adding a child to an adult’s credit profile, not only does the child’s own credit profile become established in his or her name and SSN, but the child is also able to begin building their credit.

The Cost of Synthetic Fraud

While victims of identity theft typically are not liable for fraudulent purchases or accounts, as long as they can prove they are the real SSN holder and not the thief, banks and other financial institutions are left to absorb the cost. This scheme is not only incredibly costly to banks across the country — with losses estimated at $20 billion in 2020, according to the Federal Reserve Bank of Boston — but gaps in the U.S. Fair Credit Reporting Act may have also increased the likelihood of repeat offenders.

The Federal Reserve has reported that bad actors are able to ‘flood the financial institution with an overwhelming number of claims’ on their fake accounts, and when creditors are unable to fulfill the investigation in the allotted timeframes, the disputed item is removed from the false credit report and time and time again, fraudsters get away with the act.

“Synthetic IDs are a struggle for community banks to identify,” states Lenore Breit, vice president – compliance manager at Wausau’s Prevail Bank. “Based on a recent presentation, [community banks] most likely have synthetic ID fraud in their deposit and loan accounts that remains undetected with traditional third-party ID verification programs that most community banks use.”

“There are other, more robust ID verification programs available to detect synthetic ID fraud,” adds Breit. “But they are costly and may not interface with legacy software.”

One such software program, the electronic Consent Based SSN Verification service, was created in part by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The electronic service offered by the SSA was created in 2018 to aid financial institutions in combating synthetic identity fraud and verify an authorizing individual’s name, date of birth, and SSN against the SSA records. Services are based on the annual transaction volume and can cost thousands or even millions of dollars.

Common Signs of Synthetic Identification Theft

While difficult to trace, there are a few significant ways bankers can remain attentive to PII and other key indicators of synthetic identity fraud.

Most obvious is ensuring all SSNs match to the PII given. Do not assume a name change or relocation; ask questions or require verification for the sake of your bank and the security and privacy of all customers. This extra step could make all the difference in protecting the personal information of every customer.

If an account is already open, bankers should note applicants who have the same contact information or SSN as well as those with multiple authorized users.

As synthetic identity fraud becomes increasingly prevalent throughout the U.S., it is critical, for the safety of customers and security of all financial institutions, that Wisconsin bankers are prepared to combat this emerging fraudulent activity, caution community members against sharing unnecessary personal information with others, and assist individuals in regaining their rightful identity if necessary.

If you are interested in learning more about synthetic identity fraud, how these schemes can impact your bank or customers, or more ways you can take a stand against bad actors, please contact WBA’s Legal Team at wbalegal@wisbank.com or 608-441-1200.

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Law Enforcement Warns of Check Fraud Schemes in Wisconsin

By Detective Daniel R. Kuhnz, Beaver Dam Police Department

All around Wisconsin and the country, financial institutions have been targeted by check fraudsters who use homeless or indigent people to cash counterfeit checks. This method of operation has been dubbed “operation homeless” around the country. Essentially what happens is bad guys get a hold of valid business checks by intercepting them from unsecured mailboxes of businesses. Other methods of obtaining banking information of a victim business might be by purchasing blocks of data from sellers on the dark web. The bad guy then provides the account identifying information from the check or the check itself to a person who actually manufactures a new check with the valid account number and routing number on it but alters the dollar amount to stay under a certain limit (common amounts are $2,500 or less), alters the payee, and alters the check number.

They then proceed to recruit vulnerable people who are promised a portion of the proceeds. They will travel substantial distances to financial institutions that the checks are written from, so the account numbers can be validated and adequate funds are determined to be in the account to cover the check amount. They are told to use their real identification when cashing the checks to legitimize the transaction.

The bad guys who are driving the homeless or indigent people around will usually wait in an adjacent parking lot and monitor the building. If the teller determines the transaction to be suspicious and calls the police, the homeless or indigent individual is abandoned at the bank. In most cases, the homeless or indigent person is arrested and put in jail. However, law enforcement and prosecutors are usually more interested in “moving up the chain” to identify the intermediate individuals that were driving the homeless or indigent person around and ultimately, who manufactured the counterfeit check. This can be very difficult as the intermediate suspects usually provide false names and change their phone numbers.

This crime, contrary to popular belief, does not only occur only in the big cities. In fact, many of the cases that were recently found to be connected around Wisconsin overwhelmingly occurred in suburban and rural communities.

Law enforcement around the state would benefit from tellers and other employees at banking institutions to always be vigilant and constantly question whether something makes sense or not. We are confident that banking institutions are always on the lookout for fraudulent activity such as internet scams but this type of fraud can be more difficult to detect and act on. We simply want to remind you that you are on the front lines of this type of criminal activity and should know about current trends and fraud schemes that are occurring.

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Student Loan Repayment Scams

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Signs of Business Check Cashing Fraud to Watch Out For

Dave Oldenburg

By Dave Oldenburg, fraud officer, Bank First, Watertown and member of the WBA Financial Crimes Committee

Business check cashing fraud, dubbed “operation homeless” by law enforcement, continues to impact our industry. Furthermore, it can negatively affect customer perception when fraudulent “on-us” checks are cashed at your bank.

Although there are many kinds of check fraud schemes, business check cashing fraud begins when a customer’s legitimate business checks are taken from commercial mailboxes. Often times, the compromise occurs when a customer’s outgoing mail or the recipient’s mailbox is breached. These mailboxes are often unsecured — making them an ideal target to steal checks. Once the checks are stolen, the ringleader produces quality counterfeit checks that closely resemble the features of legitimate checks. In this type of fraud, the intent is to cash as many checks as possible at numerous bank branches — sometimes pocketing tens of thousands in just one day.

The ringleader creates the checks, but recruits individuals (mules) to cash the checks if they have current and valid identification. In turn, the mules receive a small portion each time a check is paid out. In an organized fashion, these criminals travel around the state with counterfeit items, drawn on many accounts from different banks.

Fortunately, there are ways to stop fraud in its tracks. Here are some suggested “best practices” for front-line staff:

  • Compare the check to recently cleared checks as well as the signature card on file.
  • Looks for signs of traced, forged, or scanned signatures that appear irregular.
  • The current check range on recently cleared items may be considered — however a counterfeit check is often in the current range.
  • Look for recently issued identification (sometimes mules will obtain identification for the sole purpose of committing check fraud).
  • Refuse to cash the check when presented with worn or damaged identification that omits information.
  • Refuse identification that doesn’t appear to match the individual presenting the check.

Be aware of some common “red flags” that may be indicators of business check cashing fraud such as:

  • The branch location is “out of the way” from the non-customer’s address listed on the check or listed on the identification presented.
  • The person presenting the check came to the branch on foot or was dropped off.
  • The person presenting the check appears anxious, rushed, or overly chatty or name drops.
  • The person is in contact with someone on their mobile phone while the transaction is being performed.

To help mitigate your institution’s risk of loss, it is recommended that checks presented by non-customers be handled with additional scrutiny. Most importantly, if the maker of the check does not have positive pay services, consider adopting procedures where an authorized signer is contacted to validate checks over a certain dollar amount.

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Identity Theft Notifications from DOR

The Wisconsin Department of Revenue recently mailed identity verification (PIN) and grant denial letters to individuals and businesses related to the Wisconsin Tomorrow Small Business Recovery Grant. Many who received these letters did not apply for the grant, making it likely those applications were submitted fraudulently by ID thieves.

For reference, attached are examples of the letters DOR has sent:

Grant PIN Verification Letter
Grant Denial Letter
Grant Denial Letter Page 2

We understand citizens receiving these letters are contacting local law enforcement agencies to report identity theft. Please refer to the Wisconsin Tomorrow Small Business Recovery Grant link for additional information related to the grant program and resources available for victims of ID theft.

The citizen, or their authorized representative, may make a request for a copy of the fraudulent grant application by contacting DOR customer service at (608) 266-2772.

If you have any questions, do not hesitate to reach us at (608) 266-2772. We appreciate your assistance with this important issue.

By, Ally Bates

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Update on Consumer Fraud, Including Imposter Scams and Money Mule Schemes

Consumer fraud has been on the rise amid the COVID-19 pandemic. WBA has become increasingly aware of unemployment, EIDL, and PPP fraud. On July 7, 2020, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert financial institutions to potential indicators of imposter scams and money mule schemes. 

The advisory contains descriptions of imposter scams and money mule schemes, financial red flag indicators, and information on reporting suspicious activity. Generally, fraudsters are targeting customers, and financial institutions are advised to remain alert for potential suspicious activities. For example, a customer may be in contact with criminals impersonating organizations such as the Internal Revenue Services (IRS), the Center for Disease Control and Prevention (CDC), the World Health Organization (WHO), and other healthcare or non-profit groups, looking to offer fraudulent services to victims. 

In addition to imposter scams, FinCEN outlines money mule schemes whereby a person, either knowingly or unknowingly, transfers money that has been acquired illegally, on behalf of another. An individual may either be motivated by ignorance, a romance scam, or be complicit, with expectations of profit. For example, a financial institution may notice transactions that do not fit a customer’s history, suspicious new accounts, or otherwise atypical transactions. 

In particular, there have been schemes detected related to unemployment fraud. Financial institutions may notice a customer who receives multiple state unemployment insurance payments. The United States Secret Service has identified a crime ring behind a large volume of fraudulent unemployment claims being filed with State departments across the country. As discussed above, participants may be complicit, or unknowing of their involvement, financial institutions should remain vigilant to identify potential fraud. 

Similar to unemployment fraud, financial institutions have begun identifying fraud related to EIDL and PPP loans. Given the potential avenues for fraud, financial institutions should become familiar with the known schemes, and resources available. For additional information consider the following resources: 
 
FinCEN advisory. 

Fraud related to SBA loan programs. 

By, Ally Bates

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Breaking: Recent Bank Failures: What Does It Mean to Your Institution? FREE Webinar

Doubtless we’ve all heard by now of the sudden and unexpected closures of Silicon Valley Bank and others last week. You’ve also likely heard federal regulators announced plans to support depositors of the two banks and prop up consumer confidence in the banking industry. What exactly happened here? Are more bank failures expected? What were the actions the regulators took to guarantee the deposits of these banks’ customers?

In this short webinar, we’ll address the problems faced by Silicon Valley Bank and other recently failed banks, and anticipate questions your customers may be asking you. We’ll sort our way through what has happened and ensure you’re prepared with the right information to understand the present situation, as well as address concerns throughout the industry.

What You’ll Learn

  • What has happened so far?
  • Will it happen to other financial institutions?
  • Is the industry in trouble?
  • Regulatory and government responses
  • Impact on FDIC deposit insurance
  • New assessment fee
  • Communication and management
  • What to tell concerned customers
  • Future outlook

Who Should Attend
Anyone in the financial institution that would like an update on current events. Especially front-line personnel who may need to respond to questions from the public.

Instructor Bio
Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Managing Director for Treliant Risk Advisors in Washington, D.C. Through his working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves on the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.

Registration 

  • Free

 

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Lessons Learned from the FDCPA Collection Rule Changes

Do you have both sets of last year’s FDCPA changes down pat? Not everyone does. Join us for this unique opportunity to learn about the landmines from other financial institutions’ experiences under the new rules.

After This Webinar You’ll Be Able To:

  • Explain the new rules regarding debt collection communications, such as voice messages, emails, text messages, and social media
  • Understand how to properly adhere to the new call attempt restrictions of not more than seven times within seven days
  • Determine how and when collectors must contact the consumer before furnishing debt information to a credit reporting agency
  • Explain what qualifies as time-barred debt and how collectors must handle it
  • Identify what the CFPB has indicated are some of the biggest problems

Webinar Details
Over a year ago, the CFPB implemented two rounds of major changes to the Fair Debt Collection Practices Act which affected all financial institutions and their third-party debt collectors.  These changes covered the consumer’s control over how often and by what means you can communicate with them, the proper use of newer communication methods (i.e., mobile phone, voicemail, email, text messages, and social media), the limitation on collection efforts to not more than “7 times within 7 days,” the required use of a “limited-content message” when leaving messages in certain situations, and the restrictions on attempting to collect time-barred debt. This program will explore the problems financial institutions have encountered under these new rules and the lessons learned.

Who Should Attend?
This informative session is directed to all loan officers, loan operations personnel, credit administration personnel, collection staff, compliance officers, attorneys, managers, and others involved in the collection process.

Take-Away Toolkit

  • CFPB’s Fair Debt Collection Practices Act Examination Procedures (updated December 2022)
  • CFPB’s Small Entity Compliance Guide for the Debt Collection Rules
  • 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

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.

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. Fast 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.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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Cannabis Banking: Hemp, MRBs, & CBD Business Update

The cannabis industry is flourishing. Banking these thriving businesses could be good for your institution, but are there remaining questions or concerns? This webinar will take the stigma out of banking cannabis-related businesses. It will provide best practices and sample policy to enable you to prepare your own policies and procedures.

After This Webinar You’ll Be Able To:

  • Differentiate marijuana-related, hemp-related, and CBD businesses
  • Explain federal regulations to your board and management team to support their decisions about banking cannabis-related businesses
  • Understand FinCEN’s guidance for conducting due diligence for cannabis-related businesses
  • Ask the right questions at account opening to avoid “discovering” a cannabis business after the fact
  • Update your BSA compliance program, including risk assessment, monitoring procedures, and training
  • Address concerns lenders have regarding the unique nature of collateral for cannabis-related businesses

Webinar Details
Although marijuana remains a Schedule I substance federally, 39 states have now legalized either medical marijuana, recreational marijuana, or both – and even more states are poised to pass legislation. This has opened an entirely new, booming industry, packed with businesses who need deposit accounts, loans, and other financial products.

Could a cannabis business open an account or borrow from your financial institution? Or does confusion remain regarding the difference between marijuana- and hemp-related laws? Where do you start? What are the risks? What due diligence is required? What about all the cash transactions, CTRs, and SARs? What reporting is expected? This timely session will address these questions, differentiate between marijuana-related and hemp-related laws, and map out the landmines. Learn the facts so you can make an informed decision about whether to serve these businesses.

Who Should Attend?
This informative session is designed for branch managers, loan managers, BSA officers, compliance officers, and senior management.

Take-Away Toolkit

  • Sample policy for banking cannabis-related businesses
  • Sample due diligence worksheets
  • 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

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.

Presenter
Dawn Kincaid — Brode Consulting Services Inc

Dawn Kincaid began her banking career while attending The Ohio State University. She has over 20 years’ experience in client service, operations, information technology, administrative and board relations, marketing, and compliance. Most recently, Kincaid served as the Senior Vice President of Operations for a central-Ohio-based community bank, where she created and refined policies and procedures, conducted self-audits and risk assessments, and organized implementation of new products and services. Kincaid has served in the roles of Compliance, BSA/AML, CRA, Privacy, and Security Officer. She has led training initiatives, prepared due diligence information, completed a variety of regulatory applications, coordinated internal and external audits and exams, and presented for numerous state associations.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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Cryptocurrency Regulatory Expectations & Guidance

Does your institution provide cryptocurrency services? Even if you don’t, you need to understand the attendant regulations to deal with accountholders that have embraced it. Every financial institution needs to understand the agency-issued guidance, red flags, and potential for fraud. Now is the time to learn more.

After This Webinar You’ll Be Able To:

  • Understand crypto-asset risks to financial institutions
  • Identify potential red flags and risks with cryptocurrency
  • Explain related regulatory expectations and guidance
  • Define common cryptocurrency industry terminology
  • Recognize crypto asset-related frauds and scams

Webinar Details

Even if your institution is not planning to actively participate in cryptocurrency, you should be aware of the expectations when banking an accountholder that has embraced the distributed ledger technology. Cryptocurrency activity is conducted by millions of Americans, and financial institutions must understand the risks and red flags. The regulatory agencies have issued guidance explaining their expectations.  Do your policies and procedures address these expectations? Have you implemented gates and guardrails to control risk? As the digital asset world continues to evolve, it is critical that your institution understands regulatory expectations and is ready to handle accountholders that engage in cryptocurrency activity. This program will explain current crypto asset-related frauds and scams and red flags to help protect your accountholder’s assets.

Who Should Attend?
This informative session is designed for compliance officers, BSA officers, managers, trainers, and all staff that want to understand the current regulatory expectations and guidance regarding cryptocurrency and digital assets.

Take-Away Toolkit

  • Sample due diligence questions
  • Crypto lingo terms and definitions
  • Detailed regulatory reference list
  • Virtual asset red flag indicators of money laundering and terrorist financing
  • Crypto asset-related risk chart
  • Sample policy language
  • 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

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.

Presenter
Molly Stull — Brode Consulting Services, Inc.

Molly Stull began her career as a teller while working on her undergraduate degree and has continued working in the financial industry ever since. She has experienced the growth of a hometown bank, branch mergers, charter changes, name changes, etc. Stull has activated business resumption plans, performed secondary market quality control reviews, processed wires, filed SARs, and coordinated reviews with external auditors and examiners. Her favorite role has always been educating staff and strongly believes that if staff understands the reason for a process they will be more compelled to follow the procedures. Stull holds a bachelor’s from the University of Akron and an MBA from Ashland University

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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Opening Accounts Online: CIP, CDD, Documentation, & Beneficial Ownership

Online account opening is here to stay. A cascade of regulations apply, including BSA, CIP, CDD, E-SIGN, beneficial ownership, and more. Would you be able to identify a red flag? Are you adept at wading through the documentation? If all this seems like paddling upstream, this webinar will bring smooth sailing.

After This Webinar You’ll Be Able To:

  • Explain and implement the E-SIGN consent process to open accounts online
  • Understand which deposit regulations are related to E-SIGN and have compliance provisions
  • Use the most-recent BSA guidance to satisfy CIP due diligence requirements
  • Define and identify acceptable documents to open accounts and incorporate risk mitigation into the new account process
  • Document the requirements for accounts subject to beneficial ownership

Webinar Details

Compliance with E-SIGN requirements is one piece of the puzzle to opening accounts online, while knowing the “true identity” of the customer for BSA and CIP completes the process. What additional “out of wallet” questions should be asked when accounts are opened online? How does electronic account opening impact the BSA risk assessment process? Learn about the additional controls needed to protect your financial institution and red flags for reporting suspicious activity. Important requirements will be covered, including:

  • CIP required documentation and “reasonable belief” of the identity of the customer
  • Risk-mitigation strategies
  • Beneficial ownership criteria and documentation

Who Should Attend?
This informative session will ensure compliance with e-banking and is designed for compliance officers, risk managers, operations managers, business development managers, and others responsible for managing online banking, E-SIGN compliance, e-statements, and e-disclosures.

Take-Away Toolkit

  • Current exam procedures and resources for online banking
  • E-SIGN checklist and answers to common questions
  • 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

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

Presenter
Susan Costonis, CRCM – Compliance Training & Consulting for Financial Institutions

Susan Costonis is a compliance consultant and trainer who began her career in 1978. She specializes in compliance management along with deposit and lending regulatory training. Costonis has successfully managed compliance programs and exams for institutions that ranged from a community bank to large multi-state bank holding companies. She has been a compliance officer for institutions supervised by the OCC, FDIC, and Federal Reserve. Costonis has been a Certified Regulatory Compliance Manager since 1998, completed the ABA Graduate Compliance School, and graduated from the University of Akron and the Graduate Banking School of the University of Colorado. She regularly presents to financial institution audiences in several states and “translates” complex regulations into simple concepts by using humor and real-life examples.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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The Sleepers: Risks of Safe Deposit Boxes, Mobile Banking, Prepaid Cards, & RDC

High-profile operational issues often command the most attention. But what about the “sleepers”? Are your compliance and operations staff adequately tending to things like safe deposit boxes, mobile banking, prepaid cards, and RDC? Join this webinar to ensure your policies and procedures will bear up under regulatory scrutiny.

After This Webinar You’ll Be Able To:

  • Open and monitor safe deposit boxes (SDBs) for suspicious activity
  • Understand regulatory requirements impacting electronic banking services
  • Define the prepaid card rules and understand the error-resolution process
  • Establish strong oversight and controls over your RDC program
  • Use provided tools to assess risks associated with electronic banking, RDC, and new products or services

Webinar Details
Sleeper: “In football, a player who usually isn’t well known that goes on to have a breakout season.”

SDBs, RDC, mobile banking, and prepaid cards may not seem like flashy banking topics, but don’t let these regulatory “sleepers” fool you. Examiners have cited findings for lack of sufficient policies and procedures and inadequate controls in these areas. Quite simply, these tend to be “set and forget” issues and are accordingly reflected in examination reports.

Are you properly monitoring for suspicious activity in your SDBs? What if a SDB lessee passes away? Are your mobile deposits adhering to Reg CC guidelines? Is someone reviewing your RDC deposits for proper endorsements? Are you providing appropriate disclosures with prepaid cards? If you hesitated in answering any of these questions, then this session is for you!

Who Should Attend?
This informative session is designed for branch managers, operations staff, electronic banking staff, and compliance officers.

Take-Away Toolkit

  • Sample reconciliation for safe deposit boxes
  • Sample RDC site visit and risk assessment form
  • Mobile banking testing sample
  • 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

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

Presenter Bio
Dawn Kincaid – Brode Consulting Services Inc.

Dawn Kincaid began her banking career while attending The Ohio State University. She has over 20 years’ experience in client service, operations, information technology, administrative and board relations, marketing, and compliance. Most recently Kincaid served as the Senior Vice President of Operations for a central-Ohio-based community bank, where she created and refined policies and procedures, conducted self-audits and risk assessments, and organized implementation of new products and services. Kincaid has served in the roles of Compliance, BSA/AML, CRA, Privacy, and Security Officer. She has led training initiatives, prepared due diligence information, completed a variety of regulatory applications, coordinated internal and external audits and exams, and presented for numerous state associations.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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BSA Officer Part 2: BSA Reporting to the Board

BSA officers have many tasks, especially regarding compliance.

Although the board of directors has ultimate authority, they rely upon the BSA officer and management to keep them informed and raise any red flags. BSA officers have the hefty responsibility of reporting to the board — accurately and honestly. Are your reports up to snuff?

After This Webinar You’ll Be Able To:

  • Understand directors’ BSA responsibilities
  • Develop a comprehensive, ongoing BSA training program for the board
  • Explain your institution’s existing BSA/AML risks and the impact of pending BSA regulation changes
  • Use provided templates and information to create detailed board reports
  • Distinguish the key details examiners will be looking for in your board reporting

Webinar Details

Ultimate responsibility for your BSA program rests with the board. Since directors aren’t there to oversee the day-to-day operations, they must rely on the information provided by the BSA officer and management to make the strategic, risk-based decisions needed to maintain compliance and avoid costly incidents of fraud. What’s more, recent BSA enforcement actions have cited lack of board and management oversight as a significant violation.

BSA officer communication with the board starts with effective initial and ongoing training and continues with periodic reporting to keep directors informed on your BSA program and the ever-changing regulatory environment. This session will address appropriate training content, as well as the frequency and type of reporting most needed by the board. It will highlight the details that directors need most to support their decision-making and enhance their understanding of your institution’s BSA/AML risks. Learn current BSA hot buttons your board needs to understand to ensure your institution has implemented appropriate controls and dedicated resources to the areas of highest risk.

Who Should Attend?
This informative session is designed for BSA/AML officers, compliance officers, and senior management.

Take-Away Toolkit

  • Sample BSA board report
  • Director training documentation
  • 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

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

Presenter
Dawn Kincaid – Brode Consulting Services Inc
Dawn Kincaid began her banking career while attending The Ohio State University. She has over 20 years’ experience in client service, operations, information technology, administrative and board relations, marketing, and compliance. Most recently Kincaid served as the Senior Vice President of Operations for a central-Ohio-based community bank, where she created and refined policies and procedures, conducted self-audits and risk assessments, and organized implementation of new products and services. Kincaid has served in the roles of Compliance, BSA/AML, CRA, Privacy, and Security Officer. She has led training initiatives, prepared due diligence information, completed a variety of regulatory applications, coordinated internal and external audits and exams, and presented for numerous state associations.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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Handling Difficult People: Warning Signs & Effective Tactics

Are anger, confusion, ignorance, fear, mental health issues, unknown motivations, or a mixture of these on display with that difficult accountholder in front of you or on the phone?
Do you duck and cover, deflect and defer, or step up to resolve (and understand) the problem? Join this timeless webinar to learn more about how to effectively handle difficult people and situations.

After This Webinar You’ll Be Able To:

  • Determine who is the problem: accountholder, visitor, or a staff member
  • Describe the causative factors of the person’s hostility
  • Employ best practices during a confrontation
  • Explain banking procedures that a person wouldn’t know
  • Use cognitive listening to resolve a problem
  • Understand the warning signs when a person is about to become volatile
  • Design your course of action to resolve a situation

Webinar Details
Handling difficult people is one of the hardest situations staff has to manage on a regular basis. This program will review problems frontline staff and management could face during interactions with accountholders and explain ways to cope when things get hostile. People who become upset need to be defused and doing so is not always easy. The most well-meaning intentions could escalate the problem. Join us to learn more about causative factors, warning signs, and the proper use of cognitive listening.

Who Should Attend

This informative session is designed for newer ag lenders, credit analysts, and loan committee members who want to take some of the mystery out of ag lending and increase their knowledge and skills in assessing this critical segment.

Take-Away Toolkit

  • Incidents report form
  • Security tips
  • 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

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.

Presenters

Barry Thompson, CRCM — Thompson Consulting Group, LLC

Barry Thompson is an international speaker, trainer, consultant, and writer. He is a security and compliance “guru” for a leading national training organization and regularly presents security conferences for trade groups – he has trained over 54,000 financial professionals.

Thompson is recognized worldwide, presenting in Brussels, Belgium to European bankers on internal fraud; at the United Nations on identity theft; and to Japanese bankers on bank security. Thompson has worked in the financial services industry for over four decades, and has held the positions of security officer, compliance officer, treasurer, senior vice president, and executive vice president. He has handled over 900 security cases and has been involved with investigations and prosecutions at the federal, state, and local levels. Thompson is the author of 101 Security Tips for the Beginning Security Officer and Inside the Vault and has been interviewed by Newsweek, Computer World, USA Today, and other national publications.

Arvin Clar, CFE — Thompson Consulting Group, LLC

Arvin Clar is a nationally known speaker with 35 years’ experience in risk assessment and security in the financial services industry. Prior to joining Thompson Consulting Group, Clar was a detective in the Financial Crimes Unit for the Cleveland Police Department for over 29 years. While there, he investigated thousands of financial crimes and presented them for state and federal prosecution. He also served as an Assistant Vice President for Charter One Bank as their Bank Protection Coordinator for over 17 years, overseeing the safety and investigation of fraud issues of 750 banking branches throughout five states. Clar serves as Adjunct Faculty at Cuyahoga Community College, in the College of Criminal Justice, where he has taught for over 35 years, lecturing on criminal justice, criminology, and criminal investigation.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
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Provisional Credit Under Reg E: Rules, Best Practices, & FAQs

Your accountholder is alleging an EFT error. Now what?
Are you required to provide provisional credit? Are there deadlines? What information is required? What if the accountholder won’t cooperate? How does the situation get resolved? Do you know the answer to all these questions? If not, we can remedy that!

After This Webinar You’ll Be Able To:

  • Understand what constitutes an unauthorized transaction for purposes of provisional credit under Reg E
  • Distinguish between what you can and can’t require of consumers before giving provisional credit
  • Explain the specific deadlines for completing investigations and providing provisional credit
  • Determine the proper dollar amount of provisional credit required by Reg E
  • Use the best practices for providing provisional credit under Reg E

Webinar Details
Regulation E protects consumers from unauthorized electronic funds transfers (EFTs) by requiring your institution to investigate alleged unauthorized EFTs and to provide accountholders with provisional credit within specific deadlines. Did you know that your institution is obligated to conduct an investigation even though your accountholder won’t cooperate? Did you know your institution is obligated to provide provisional credit within the standard deadlines even though you haven’t received sufficient information from your core processor to conduct an investigation? Conversely, did you know that you aren’t required to provide provisional credit if the accountholder won’t sign a simple written statement regarding the alleged unauthorized EFT? This webinar will explain how to determine when your institution is required to provide provisional credit and in what amount.

Who Should Attend?
This informative session will benefit all deposit personnel, tellers, service representatives, new accounts staff, account officers, managers, auditors, attorneys, and compliance personnel.

Take-Away Toolkit

  • Detailed sample form of investigation procedures including specific deadlines for providing provisional credit
  • Easy-to-follow matrix to determine the dollar amount of provisional credit
  • 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

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.

Presenters

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. Fast 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.

Registration Options

  • $279 – Live Webinar Access
  • $279 – OnDemand Access + Digital Download
  • $379 – Both Live & On-Demand Access + Digital Download
/by
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SAR Line-by-Line: Compliance & Insight

The sheer volume of information requested in a SAR filing can be daunting. The reports can be detailed, documentation heavy, and subject to scrutiny. Attend this timely webinar to gain insight and learn more about SAR filing.

After This Webinar You’ll Be Able To:

  • Determine which parties should be reported as subjects or in the narrative
  • Identify words and phrases prohibited anywhere but the narrative portion
  • Use FinCEN’s SAR user guide to find detailed SAR instructions
  • Define Purchaser/Sender and Payee/Receiver as subject roles in the transaction
  • Explain how to reference additional information from the checkboxes within the narrative
  • Distinguish between “corrected” and “amended” reports

Webinar Details
This webinar will break down each component of a SAR from what goes into the “Filing Note to FinCEN” box to the filer’s contact information and everything in between. Filers often have questions about the “Other” boxes in each section and the correct way to complete them, or when simply checking a box is not enough and they want to provide additional information about the activity. Participants will be given a list of guidance and advisory documents addressing the reporting of certain suspicious activities, such as human or drug smuggling and trafficking, elder financial exploitation, money mule activity, business and personal e-mail compromise, and benefits fraud, among others.

Who Should Attend?
This informative session is designed for BSA officers and personnel, anyone responsible for BSA compliance and SAR completion, audit, and compliance personnel.

Take-Away Toolkit

  • List of FinCEN advisories and guidance
  • Important excerpts from the FinCEN filing instructions
  • Key components for completing the SAR narrative
  • Internet links to important SAR resources
  • 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

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

Presenter
Mary-Lou Heighes – Compliance Plus, Inc.

Mary-Lou Heighes is president and founder of Compliance Plus, Inc., which has assisted financial institutions with the development of compliance programs since 2000. She provides compliance training for trade associations and financial institutions. Heighes has been an instructor at regulatory compliance schools, conducts dozens of webinars, and speaks at numerous conferences throughout the country.

Involved with financial institutions since 1989, Heighes has over 30 years’ compliance experience. Before starting Compliance Plus in 2000, she spent five years working as a loan officer, marketer, and collector. She also worked at a state trade association for seven years providing compliance assistance and advising on state and federal legislative issues that affect financial institutions.

Registration Options

  • $245 – Live Webinar Access
  • $245 – OnDemand Access + Digital Download
  • $350 – Both Live & On-Demand Access + Digital Download
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