Pub. 1 2012 Issue 5

July 2012 15 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s Phone (785) 228-0000 - Fax (785) 228-0079 1220 SW Executive Drive - 66615 P.O. Box 1654, Topeka, KS 66601 Rated A++ (Superior) By A.M. Best For more information, give us a call at (785) 228-0000. A Live, Intelligent Human Being Will Always Answer The Phone! The Kansas Bankers Surety Company A Member Of The Berkshire Hathaway Inc. Group of Insurance Companies For over 100 years, we have been serving Community Banks with: • Superior and Innovative Products • Financial Institution Crime Bond • Directors & Officers Indemnity • Bank Employment Practices Defense Policy • Check Kiting Fraud Indemnification Policy • Internet Banking Theft Catastrophe Bond • Banking Privacy Liability Policy • Cost of Replacing Compromised Bank Cards Policy • Competitive Premiums • Realistic Underwriting • Prompt Claims Service EXPERIENCE...There is no substitute! Are you looking for the calm in the storm?... caution in wiring the funds. The bank may wish to have the customer come to the bank and provide an original signature on the request to wire the funds. If the customer does have a contract with the bank for wiring funds, the bank should follow all of the available verification procedures. Proper use of verification codes on the fax should be checked. Proper verification codes should be a part of any phone verification process. Wire transfer requests by phone should almost never be allowed. In addition to problems with possible fraudulent calls, the failure to have a written instruction results in more losses to the bank. If a customer makes an error in verbally providing the amount, routing number or ac- count number, it is usually impossible for the bank to document that it was the customer’s error and not the bank’s error. Wire transfers are a necessary part of bank business for some custom- ers. The process should be approached by banks with caution and with good procedures. Because of the recent methods being used in scams, banks should be reviewing the wire transfer process so that these kinds of scams will be caught before a wire is sent. Wire requests to wire funds to international locations should be looked at with extreme skepticism because it is very difficult to get other countries’ law enforcement to work quickly to stop the crime or capture the criminals. If a scam is not detected before a wire is sent, it is often impossible to reverse the wire. For more information, please give us a call at (785) 228-0000.