Bank Funds Transfer Fraud

More than a few bank clients have reported recent incidents involving Funds Transfer Fraud.  There are a wide variety of schemes out there - and they are getting more creative every day. Here is an interesting article by ABA on the issue. Advice for bankers... Coverage for these losses should be in your fraud-bond (AKA the bond). Test and test … [Read more...]

Chubb Better With Dishonest Employees

I've complained often about the financial institution bond exclusion for "dishonest employees."Here is the clause on a Chubb policy I am currently reviewing for a bank client:This Bond terminates as to any Employee: F. immediately on the ASSURED, or any of its directors, trustees or officers not acting in collusion with such Employee, learning of … [Read more...]

Bank Bond – In Transit Insurance

This one for my bank clients & friends...The bank bond purchased by most American banks includes coverage to loss of money (and other property) "in Transit."  The coverage is also called section C in many bonds.The protection is for money being (oh surprise) transported.Coverage is limited to money transported by employees and by a contracted … [Read more...]