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Bates News, Bates Research  |  02-29-24

Addressing Transaction Fraud Litigation with Expert Consulting and Preventative Compliance

As a leading provider of financial consulting services, Bates Group has extensive experience assessing claims of transaction fraud. We understand transaction fraud on brokerage and bank accounts can manifest in various ways, including unauthorized access, phishing and social engineering, account takeover, malware and keyloggers, insider threats, and wire fraud. Victims of such fraud often allege their financial institution failed to develop, implement, and maintain internal policies, procedures, and controls to detect and prevent such fraudulent activities from occurring. These claims also allege the financial institution’s policies, procedures, and controls did not meet industry standards.

Defending allegations of transaction fraud on brokerage or bank accounts, Bates Group can help you assess the validity of these claims and provide expert testimony if necessary. Our team of experienced industry professionals has the knowledge and expertise to analyze the facts of the case and opine as to whether the financial institution’s policies, procedures, and controls were sufficient to protect their customers from the alleged financial exploitation, and whether those policies, procedures, and controls met industry and regulatory standards.

In addition, Bates Group has assisted financial institutions in preventing and deterring transaction fraud in the following areas:

  • Monitoring and Detection Systems: Reviewing advanced monitoring systems to detect unusual or suspicious activities and real-time monitoring of transactions for irregular patterns or large or unusual transactions.
  • Customer Verification and Authentication: Assisting clients in implementing robust authentication processes for customer identity verification and regularly evaluating current authentication methods and making best practice recommendations for enhancements.
  • Education and Awareness: Conducting regular training programs for customers and staff to recognize and report potential fraud and to raise awareness about common fraud tactics.
  • Encryption and Secure Communication: Reviewing and assessing security protocols to ensure that communications and transactions are encrypted to protect sensitive information and to address emerging threats.
  • Regulatory Compliance: Advising clients on adherence to regulatory guidelines and standards for effective AML programs, and regularly reviewing and updating AML programs to align with industry best practices.
  • Incident Response and Reporting: Helping clients establish a robust incident response plan for swift action in case of a security breach, ensuring timely reporting of incidents to relevant authorities and affected customers.

 

If you are representing a financial institution being sued for transaction fraud on brokerage or bank accounts, contact Bates Group today to learn more about how we can help you assess the validity of these claims and protect your client’s interests.

Practice Area Contacts:

Addressing Transaction Fraud Litigation with Expert Consulting and Preventative Compliance

Julie Johnstone

Managing Director, Practice Leader - Securities and Financial Services Litigation & Consulting

jjohnstone@batesgroup.com

971-250-4319

Addressing Transaction Fraud Litigation with Expert Consulting and Preventative Compliance

Rhonda Davis

Managing Director, Bates Compliance

rdavis@batesgroup.com

Learn More:

SECURITIES & FINANCIAL SERVICES LITIGATION & ARBITRATION

BATES COMPLIANCE

About Bates Group:

Bates Group is a financial services consulting firm that provides expert advice and guidance to our partners in compliance, litigation, and regulatory matters. Our subject matter experts are highly regarded in their respective fields.

For over 40 years, Bates’ exposure to industry challenges, litigation matters, and enforcement actions has given us unique insight into matters that allow us to benefit all our partners.