Wire Transfer Fraud and Legal Liability

Course Description

Wire transfer fraud has become a persistent and high-stakes source of litigation for financial institutions and businesses. As fraud schemes grow more sophisticated, including business email compromise, impersonation scams, and technology-enabled deception, attorneys must be prepared to navigate the complex interplay between operational risk, contractual obligations, and liability under the Uniform Commercial Code. This program provides a deep dive into the legal framework governing wire transfers, with a particular focus on UCC Article 4A. The session will analyze how courts determine whether a payment order is “authorized,” what constitutes a “commercially reasonable” security procedure, and how loss allocation shifts between financial institutions and their customers when fraud occurs.

Syllabus

1. Wire transfer terminology and framework
2. Applicable law
3. Fraudulent wire liability analysis
   • Liability between private people (no bank)
   • Liability between customer and bank
4. Additional liability for name and account number discrepancy