Statistics regarding payment systems in the United States are by now well-known. Check usage hit all-time highs in the 1990s, but has been on the decline since. Meanwhile, debit card, credit card, and electronic or automated clearing house (ACH) payments have sky-rocketed. Online banking has increased substantially, as customers have become more familiar and more comfortable with it.Unfortunately, as with any other advance in bank technology, the fraudsters seem to have adapted the fastest to this change. When check fraud became more complicated and less fruitful, the focus turned to electronic payments. The Internet--and the ease with which millions of potential victims could be reached--even brought back an old standard in a new form: so-called "419" or "Nigerian" scams.The problem for banks has always been the same: taking into account what frauds are fashionable today, what security measures must or should banks take in response? The answer is the same: commercially reasonable … [Read more...] about Is Your Bank’s Security System Adequate?
Your bank account
As seen in this article, "It may be time to come clean — if it’s not already too late.That’s the advice Newark attorney Lawrence Horn is giving to people who have money in Israeli (and other overseas) bank accounts, but have neglected to report it on their tax forms.Since 2008, the U.S. government has been cracking down on holders of foreign bank accounts. ...'Once the bank gives your name to the IRS, you’re disqualified' from entering the disclosure program, Horn said. 'If you’re under an audit, under examination, or the bank has disclosed your name, you can’t enter the program.'" » Link to Article in The Jewish Standard … [Read more...] about Time to Come Clean: Attorney Warns About the Price of Unreported Foreign Bank Accounts
Many litigants are unfamiliar with the process that must be followed after a judgment awarding damages is entered in their favor. In a perfect world, the process would be easy, quick, and inexpensive. After all, if the winning party was not awarded attorneys’ fees, spending time and money paying an attorney to recover damages can be frustrating. The process, however, is typically not easy particularly when the losing party’s ability to pay is not obvious.Generally-speaking, much of the procedure is governed by state law, as Federal Rule of Civil Procedure 69 provides that a money judgment is enforced according to the procedure of the state where the court is located. Initially, a certified copy of the judgment must be filed in the court where the judgment is to be enforced. Thereafter, a judgment creditor (the party who recovered the judgment) may engage in “proceedings supplemental” and obtain discovery from the debtor about its assets. This involves serving … [Read more...] about So, You’ve Won Your Case and Recovered a Judgment in Federal Court. Now, How Do You Collect?
Savvy real estate investors know they can avoid paying income taxes on the sale of appreciated real estate by purchasing "like-kind" exchange property. But what happens when the intermediary holding sale proceeds on behalf of a seller files for bankruptcy in the middle of the transaction? In the recent case of Millard Refrigerated Services, Inc. v. LandAmerica 1031 Exchange Services, Inc., the United States Bankruptcy Court for the Eastern District of Virginia decided that sale proceeds were the property of the bankrupt intermediary's estate and did not belong to the seller. Based on this decision, a seller embarking on a 1031 exchange must exercise extra caution to protect its sale proceeds from the intermediary's creditors.What Is a 1031 Exchange?A 1031 exchange allows a taxpayer to defer the payment of tax that otherwise would be due upon the realization of capital gains on the disposition of business or investment property. In the typical transaction, a seller assigns its rights … [Read more...] about 1031 Exchanges: Protecting Your Sale Proceeds from a Qualified Intermediary’s Creditors
The US Federal Government recently issued an alert regarding Backoff Point-of-Sale Malware. The advisory, which was released by the DHS (Department of Homeland Security) and US-CERT (United Stated Computer Emergency Readiness Team), states the following:This advisory was prepared in collaboration with the National Cybersecurity and Communications Integration Center (NCCIC), United States Secret Service (USSS), Financial Sector Information Sharing and Analysis Center (FS-ISAC), and Trustwave Spiderlabs, a trusted partner under contract with the USSS. The purpose of this release is to provide relevant and actionable technical indicators for network defense against the PoS malware dubbed “Backoff” which has been discovered exploiting businesses’ administrator accounts remotely and exfiltrating consumer payment data.US-CERT, Alert (TA14-212A), Backoff Point-of-Sale Malware, Department of Homeland Security (Aug. 22, 2014 revision) (emphasis added).DHS … [Read more...] about If Your System Was Attacked by “Backoff” Malware, Would Your Insurance Cover a Data Breach Involving Credit Card Numbers?
On November 14, 2014, the Eastern District of North Carolina entered summary judgment in favor of an insured seeking coverage for embezzlement for actions by owners of a vendor. Colony Tire Corp. v. Fed. Ins. Co., No. 2:15 CV 27, 2016 WL 6683590 (Nov. 14, 2016 E.D.N.C.)The insured was seeking coverage under a claims-made policy for theft that occurred between 2002 to 2014. The embezzlement losses were approximately $492,350.00. The insurer denied coverage claiming that Colony, the insured, could not establish that the loss was caused by an “Employee” under the Policy.The money was stolen from Colony through its payroll and tax vendor, Employee-Services.Net (“ESN”). Through the contract between ESN and Colony, ESN was allowed to withdraw funds from a designated bank account to pay Colony’s payroll and taxes. Owners/Managers/Principals of ESN, James Staz and William Staz (collectively “the Stazes”) pled guilty to … [Read more...] about Colony Tire Corp. v. Fed. Ins. Co.: Is Owner-Manager of Your Vendor Your “Employee?”
If you have an email account, then you by now have received one or more emails from companies notifying you that their email communication provider, Epsilon, suffered a security breach that resulted in unauthorized parties accessing your name and email address. Since Epsilon purports to send 40 billion emails annually, and boasts over 2,500 corporate clients including 7 of the Fortune 10, the impact has been widespread.The companies affected include Best Buy, Capital One, Citi, Dell, Disney, Hilton, Home Shopping Network, JPMorgan Chase, Kroger, Marriott, Ritz-Carlton, Target, TiVo, Verizon and Walgreens. (For a fuller list click here). So many people have received multiple notifications about this single incident that “Epsilon Bingo” cards have sprung up on the Internet (if you collect notifications from each company on the card, you win the game). Although much larger in scope, this breach is similar in nature to those suffered by other email providers … [Read more...] about Why Your Organization Faces Risk from the Epsilon Email Breach (Even if They Are Not Your Vendor)
fined $185 million for opening over 1.5 million bank accounts and 585,000 credit lines without customers’ knowledge or consent. Wells Fargo claimed that over 5,300 employees had been fired over the fraud issues, seemingly passing the buck as if something that widespread couldn’t be the result of a company culture. Unsurprisingly, some of those former employees are now suing for wrongful termination.The $2.6 billion class action lawsuit was filed Thursday in California Superior Court in Los Angeles County by Alexander Polonsky and Brian Zaghi, who were among the 5,300+ fired. According to the complaint, they “did not meet their impossible quotas” and were singled out “so that all other employees would learn that they must engage in these fraudulent actions in order to meet the unrealistic sales quotes or else lose their jobs.” District managers allegedly monitored all of their employees closely, stressing the steep quota of a whopping … [Read more...] about Ex-Wells Fargo Employees Sue; Say Bank Drove Them To ‘Cheat Customers’
If they go and deposit once, no questions are going to be asked to them, ‘clarifies’ FM. With 10 days more to go for the deadline to deposit the demonetised Rs. 500 and Rs. 1,000 notes, the Reserve Bank of India has issued yet another notification stating that the deposit in demonetised currency in excess of ₹ 5,000 into a bank account will be received for credit only once during the remaining period till Dec. 30, 2016.The notification also added that the credit in such cases shall be afforded only after questioning the tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation.However, Finance Minister Arun Jaitley, in a statement to media, said: “Rs 5000 limit does not apply to them, if they go and deposit once. But if same person is going to deposit every day, that gives rise to suspicion….If they go and deposit with the bank any amount of … [Read more...] about Deposit All Your Old Rs.500, 1,000 Notes At One Go, Tell Banks Why You Didn’t Deposit Earlier: RBI
In September last year, an allegation of fraudulent siphoning of 19 Lakhs was made out via an ICICI current bank account of Sanjay Dhande, a former Director of IIT Kanpur. The account was jointly owned by Dhande and his wife and they were using mobile phone banking, using the services of Vodafone. The sim was registered in his wife’s name. Peculiarly the sim had stopped working around the 6th to 9th of September, 2013 during which time the fraudulent siphoning of funds via a foreign IP address in Turkey took place. The complaint was made to the mobile service provider on 10th of September, regarding the non -functioning of the sim. Later the victim received the full horror of the information and immediately asked the bank to freeze his accounts. When Mr. Dhande sent a complaint letter to the Vodafone office regarding illegal sim hacking, he was told that on 6th of September, a duplicate sim was issued by the Pune Office of the service provider to a third person without … [Read more...] about Expanding horizons of data protection in cyberspace: Court orders negligent bank and mobile service provider to pay compensation