EFT Fraud Protection
What it is
Allows financial institutions to protect commercial account holders against fraudulent funds transfer losses initiated by a fraudster purporting to be the account holder.
Although financial institutions are not contractually liable to reimburse their commercial account holders for fraudulent funds transfer losses, they incur costs after being sued by the account holder. EFT Fraud Protection allows the financial institution to indemnify their account holders against fraudulent funds transfer losses, thus eliminating costs for defense, negative PR, and lost revenue.
A business has their checking account at bank ABC. A fraudster gets access to the online banking credentials of the business and initiates a funds transfer request to a third-party from bank ABC.
After the business owner realizes missing funds, they notify their financial institution which is typically the first time they find out that the bank is not contractually nor legally liable. The loss is also not covered by any of the bank's insurance policies since it was not the bank that was compromised, the transaction was initiated by the "account holder."
The business then sues bank ABC and loses. The bank incurs defense costs, negative PR, and lost revenue.
By including EFT Fraud Protection to its commercial account holders, the bank not only increases its value proposition, but gains a competitive advantage, and increases non-interest fee income.
Depends on portfolio, transactions, and controls.
What is needed for a proposal
Complete the fields below or contact us.
*Insurance policies backed by carriers rated "A" or better by A.M. Best