Category Archives: BANKING & FINANCE

Virginia Court in Email ACH Funds Transfer Fraud Case Relies on NACHA Rules in Permitting Claims Against Bank

Posted on January 29, 2021 by Ludwig & Robinson PLLC

As L&R has showed, careful application of NACHA’s rules can be critical to resolving funds transfers losses involving ACH transfers. See L&R Obtains Prompt Full Recovery for Polish Client in ACH Cybercrime Case. A recent Virginia case illustrates the relevance … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged ACH, ACH Fraud, BEC, Business Email Compromise, Credit Union, Cybercrime, Cybersecurity, Funds Transfer Fraud, NACHA, NACHA Operating Rules, Salvatore Scanio, Social Engineering, UCC, UCC Article 4A, UCC § 4A-207 | Leave a comment

Nevada Bench Trial Applies UCC in Allocating Loss Between Hacked Seller and Duped Buyer

Posted on January 28, 2021 by Ludwig & Robinson PLLC

In cybercrime cases, there often are two victims: one a business subject to an email hack and another that transmits funds based on fraudulent wire instructions from the hacked email account. Which party should bear the loss? A Nevada federal … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged BEC, Business Email Compromise, Comparative Negligence, Cybercrime, Cybersecurity, Funds Transfer Fraud, Salvatore Scanio, UCC, UCC Article 4A, UCC Articles 3 and 4, Unauthorized Transfer, Uniform Commercial Code, Wire Transfer Fraud | Leave a comment

Salvatore Scanio’s Article on the NAIC Insurance Data Security Model Law Published by ABA’s Cybersecurity and Data Privacy Committee

Posted on January 26, 2021 by Ludwig & Robinson PLLC

Salvatore Scanio’s article, NAIC Insurance Data Security Model Law: Key Provisions and Adoption to Date, was recently published by the American Bar Association, Tort Trial & Insurance Practice Section, Cybersecurity and Data Privacy Committee (Winter 2021). The NAIC Model, issued … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged American Bar Association, Cybercrime, Cybersecurity, Cybersecurity and Data Privacy Committee, data privacy, data security, Data Security Model Law, NAIC, privacy, Salvatore Scanio, Tort Trial & Insurance Practice Section | Leave a comment

New York Court Rejects Cut Down of UCC Art. 4A’s 1-Year Notice Rule for Unauthorized Funds Transfers

Posted on December 18, 2020 by Ludwig & Robinson PLLC

In a recent unpublished New York opinion, the court found a bank’s 60-day notice provision in its Account Terms and Conditions for reporting unauthorized funds transfers to be unenforceable. Cardino v. J.P. Morgan Chase Bank, N.A, 2020 N.Y. Misc. LEXIS … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, LITIGATION | Tagged Account Terms and Conditions, Bank Contract, Bank Liability, Bank Notice, Bank-Customer Agreement, Cybercrime, Cybersecurity, Funds Transfer Fraud, Notice Cut-Down, Salvatore Scanio, Statute of Repose, UCC Article 4A, Unauthorized Transfer, Uniform Commercial Code, Wire Transfer Fraud | Leave a comment

FinCEN Advisory Highlights Cybercriminals Exploiting COVID-19 Pandemic for Funds Transfer Fraud

Posted on December 7, 2020 by Ludwig & Robinson PLLC

In a continuing trend of regulatory pronouncements in the area, the Financial Crimes Enforcement Network (FinCEN) recent issued an Advisory on Cybercrime and Cyber-Enabled Crime Exploiting the Coronavirus Disease 2019 (COVID-19) Pandemic, FIN-2020-A005 (July 30, 2020). The Advisory highlights how … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged ABA, Account Takeover, ACH Fraud, American Bar Association, Bank Liability, Banking Law Committee, Ben Wallach, Business Email Compromise, coronavirus, COVID-19, Cybercrime, Cybersecurity, Email Fraud, FinCen, Funds Transfer Fraud, Salvatore Scanio, Suspicious Activity, Wire Transfer Fraud | Leave a comment

Salvatore Scanio presented an American Bar Association webinar on Cybercrime and Funds Transfer Fraud – Recent Developments

Posted on November 17, 2020 by Ludwig & Robinson PLLC

On October 21, 2020, Salvatore Scanio presented an American Bar Association webinar on Cybercrime and Funds Transfer Fund – Recent Developments. The well-attended program was sponsored by the Banking Law and Cyberspace Law committees of the ABA’s Business Law Section. He … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged ABA, Account Takeover, ACH Fraud, American Bar Association, Bank Liability, Banking Law Committee, Ben Wallach, Business Email Compromise, Business Law Section, COVID-19, Cybercrime, Cybersecurity, Cyberspace Law Committee, Email Fraud, Funds Transfer Fraud, Law Firm Cybercrime, Salvatore Scanio, Wire Transfer Fraud | Leave a comment

L&R Obtains Prompt Full Recovery for Polish Client in ACH Cybercrime Case

Posted on September 2, 2020 by Ludwig & Robinson PLLC

A U.S. subsidiary of a Polish company suffered a loss of nearly $100,000 arising from 10 unauthorized ACH (automated clearing house) debits over a single week. After an unknown theft of the subsidiary’s bank account number and bank name/routing number, … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged ACH Debits, ACH Fraud, Bank Liability, Business Email Compromise, Corporate ACH, Cybercrime, Cybersecurity, Email Fraud, Funds Transfer Fraud, NACHA, NACHA Operating Rules, NACHA Warranty, ODFI, RDFI, Robert Ludwig, Salvatore Scanio, Unauthorized ACH Debits | Leave a comment

Illinois Supreme Court Holds a Non-bank Entity is a “Bank” Under UCC Art. 4A

Posted on August 17, 2020 by Ludwig & Robinson PLLC

The Illinois Supreme Court, applying the Uniform Commercial Code’s broad definition of a “bank,” held that a futures commission merchant was a “bank” for purposes of a fraudulent wire transfer under Article 4A. Whitaker v. Wedbush Securities, Inc., 2020 Ill. … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged Account Takeover, Bank Liability, Cybercrime, Cybersecurity, Definition of Bank, Email Fraud, Funds Transfer Fraud, futures commission merchant, Robert Ludwig, Salvatore Scanio, UCC Article 4A, Uniform Commercial Code, Wire Transfer Fraud | Leave a comment

D.C. Law Firm Victim of Email Wire Fraud Fails to Sufficiently Plead Bank Aiding and Abetting

Posted on July 28, 2020 by Ludwig & Robinson PLLC

A recent email funds transfer fraud case illustrates a novel claim against a bank dismissed at the pleading stage. Beins, Axelrod, PC v. Analytics, LLC, 2020 U.S. Dist. LEXIS 71713 (D.D.C. Apr. 23, 2020). After a D.C. law firm, seeking its … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged Aiding and Abetting Liability, Attorney’s Fees, Bank Liability, Business Email Compromise, Computer Fraud and Abuse Act, Cybercrime, Cybersecurity, Email Fraud, Funds Transfer Fraud, Robert Ludwig, Salvatore Scanio, UCC Article 4A, Uniform Commercial Code, Wire Transfer Fraud | Leave a comment

Conflicting Results in Recent Funds Transfer Coverage Cases in Virginia

Posted on June 29, 2020 by Ludwig & Robinson PLLC

Three recent insurance coverage cases arising from fraudulent email/funds transfer schemes in the Eastern District of Virginia arrived at different results. In Midlothian Enter., Inc. v. Owners Ins. Co., 2020 U.S. Dist. LEXIS 30237 (E.D. Va. Feb. 5, 2020), hackers … Continue reading →

Posted in BANKING & FINANCE, CORPORATE, INSURANCE, INTERNATIONAL, LITIGATION | Tagged Account Takeover, ACH Fraud, BEC, Business Email Compromise, Computer Fraud, Cyber Insurance, Cybercrime, Cybersecurity, Funds Transfer Fraud, Insurance Coverage, Malware, UCC Article 4A, Wire Transfer Fraud | Leave a comment