IAT Compliance Deadline is Tomorrow (September 18, 2009)

Are you ready for the deadline???

The delay of the original compliance date for NACHA’s IAT rule is nearing an end as the revised compliance date, September 18, 2009, is around the corner. Actually, it is tomorrow! The rule requires that an international ACH transaction entry contain a list of required information as well as BSA’s "Travel Rule" data.

An International ACH Transaction is defined as an ACH entry that is part of a payment transaction involving a financial agency’s office that is not located in the territorial jurisdiction of the United States. Financial agency means an entity that is authorized by applicable law to accept deposits or is in the business of issuing money orders or transferring funds.

An office of a financial agency is involved in the payment transaction if it:

1. holds an account that is credited or debited as part of a payment transaction; or

2. receives funds directly from a Person or makes payment directly to a Person as part of a payment

transaction; or

3. serves as an intermediary in the settlement of any part of a payment transaction.

Fortunately, NACHA does provide a wealth of information on its website on the rule, including FAQs, which you can access by clicking IAT Rule Helpful Materials.

If you still need help or have questions in this area, particularly related to the AML and OFAC compliance issues that affect processing of IATs, please contact shassett@lubrinco.com

Recent Fraud Cases of Interest...

Man indicted in fraud case

posted September 10, 2009
Total Loss: $100,000

John Dennis Sedersten, 33, joined Max R. Snodgrass, 31, Bryan Thomas Ray, 32, and Karen Ann Harris, 45, as a defendant in the 25-count indictment. From April to November 2008, the defendants used stolen checking account and personal identity information to produce counterfeit identification documents and checks, federal prosecutors said.

Source:

News-Leader

http://www.news-leader.com/article/20090910/NEWS01/909100309/1007/NEWS01/Alleged-beating-victim-indicted-in-fraud-case

Md. man guilty of fraud with dead neighbor’s name

posted September 10, 2009
Total Loss: $95,000

A Fallston man has pleaded guilty to bank fraud charges for using his dead neighbor’s identity to get credit accounts. Fifty-six-year-old Jerome Malecki’s plea entered Wednesday said he and David Johnson stole about $95,000 in Social Security and state pension payments meant for his neighbor. The neighbor’s July 2004 death wasn’t reported and federal prosecutors said Malecki continued the scheme until November 2007.

Source:

Washington Examiner

http://www.washingtonexaminer.com/local/ap/58150997.html



Man Pleads Guilty in Wal-Mart Card Phishing Scheme

posted September 10, 2009
Total Loss: $193,000

A Sacramento, California, man has pleaded guilty to charges for his role in an international scam that netted sensitive information on tens of thousands of Internet users and then used that data to open fraudulent Wal-Mart credit cards. Tien “Tim” Truong Nguyen pleaded guilty to fraud and identity theft charges on Tuesday, the day before his case was set to go to trial.Prosecutors say that, working in concert with Romanian cyber-criminals, Nguyen set up fake phishing Web sites and supplied others with stolen information that was then used to set up fake Wal-Mart instant credit accounts in stores throughout northern California.By setting up hundreds of these instant credit lines, Nguyen’s two alleged co-conspirators, Stefani Ruland and Ryan Price, netted close to $193,000 in just under two months, prosecutors say.

Tags:

Wal-Mart, GE Capital
Source:

PC World

http://www.pcworld.com/businesscenter/article/171683/man_pleads_guilty_in_walmart_card_phishing_scheme.html


Local man sentenced for loan fraud

posted September 09, 2009
Total Loss: $340,000

A Huntington-area man convicted of student loan fraud will spend one year and six months behind bars and pay $344,908 in restitution. Stephen Phillips, 38, was sentenced Aug. 27, by U.S. District Judge William W. Caldwell in Harrisburg, Pa. Phillips had pleaded guilty to the federal charge in May. A U.S. Attorney’s Office press release states the conviction arose out of a scheme in which Phillips allegedly used the identities of innocent third parties to apply for more than $340,000 in federal educational benefits.
Source:

Herald Dispatch

http://www.herald-dispatch.com/news/briefs/x1408881239/Local-man-sentenced-for-loan-fraud

check
over 100k
Bad check leads to fraud probe

posted September 09, 2009
Total Loss: $100,000

Police launched an investigation into a possible investment fraud scheme involving several victims and at least $100,000 after a 21-year-old British national was arrested Monday for passing a fraudulent check.Adam Al-Muhanna was arrested Monday, at the University of Redlands after he allegedly wrote a check to a former student there for $100,000 on a closed CitiBank account. Police say Al-Muhanna also wrote several other checks connected to bank accounts that were either closed or contained insufficient funds. At least three people say they gave money in amounts ranging from $2,000 to $65,000 to Al-Muhanna to invest and never received a return despite repeated requests for their money, according to Redlands city spokesman Carl Baker.
Tags:

Citibank
Source:

Redlands Daily Facts

http://www.redlandsdailyfacts.com/news/ci_13294132



FBI is cracking bank fraud ring

posted September 07, 2009
Total Loss: $44 million

The FBI is investigating a fraud ring accused of bilking several banks and customers — including San Antonio-based USAA and the former chief of staff of U.S. Sen. Strom Thurmond — out of at least $44 million. One person is in custody in San Antonio and agents are looking for a Nigerian man from Dallas featured on the television show “America’s Most Wanted.” The suspects are believed to have posed as customers to fraudulently withdraw money from bank accounts, including one at USAA that was tapped for $98,000.
Tags:

USAA, Citibank, Woodforest Bank
Source:

San Antonio Express News

http://www.mysanantonio.com/news/local_news/FBI_is_cracking_bank_fraud_ring.html

collusive network
credit card
over 500k
11 charged in alleged credit card fraud scheme

posted September 07, 2009
Total Loss: $650,000

Federal authorities have charged 11 people with fraud in an alleged scheme that involved creating counterfeit credit cards and using them to withdraw cash. The U.S. Attorney’s Office says the individuals charged withdrew more than $650,000 from ATMs between July 2008 through April 2009. All 11 of the suspects are from northwestern Twin Cities suburbs.According to court documents, the suspects used counterfeit credit cards to make unauthorized withdrawals, defrauding Capital One Bank. Authorities say they also used the counterfeit cards to get cash advances.
Tags:

Capital One
Source:

WQOW18

http://www.wqow.com/Global/story.asp?S=11087162

TJX pays $525,000 to settle hacking-related suit

Another example of why it is so critically important to implement a true OPSEC Program within your organization to protect your intellectual property and critical information...


04 September 2009 - 10:39 (source: finextra.com)

Retailer TJX has agreed to pay $525,000 to settle a putative class action suit from several banks related to the massive security breach at its operations that resulted in the theft of millions of credit and debit card numbers.

The money - which comes out of the reserve put aside by TJX for breach-related costs in 2007 - will primarily reimburse the settling banks for some of their expenses.

AmeriFirst Bank, HarborOne Credit Union, SELCO Community Credit Union and Trustco Bank, the remaining financial institutions that sought to join the suit, agreed to drop all claims. TJX denied all wrongdoing.

Since revealing in January 2007 that hackers had stolen more than 45 million credit and debit card numbers from its computer system, TJX has paid out huge amounts in settlements.

In June the retailer agreed to pay around $9.75 million as part of a settlement with a group of 41 state attorneys general. It has also reached a $40.9 million settlement with Visa and a $24 million deal with MasterCard over the breach.

Last week it emerged that Albert Gonzalez, the computer hacker accused of masterminding the TJX breach, has agreed to plead guilty to the offense and attacks on several other retailers.


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The LUBRINCO Group can help you to accurately identify, value and protect your critical information assets!