proved to be fraudulent. Plaintiffs often claim that banks are in the best position to identify potential scams and should warn their customers accordingly. Financial institutions are required to address and defend against these lawsuits when they arise. Asking appropriate questions, particularly when assisting elderly customers, may help prevent investment scams and benefit both the bank and its clients. Smaller banks are uniquely positioned to identify romance scams targeting older customers, whether by noticing atypical transactions or communicating with the customer’s family. 5. Require Electronic Statement Delivery Mail theft has been a longstanding issue dating back to the days of the Pony Express. During the late 1800s, intercepting stagecoaches carrying mail was a common crime. Notably, Charles “Black Bart” Boles, also known as the “Gentleman Bandit,” robbed at least 28 Wells Fargo stagecoaches in California and Oregon between 1875 and 1883. Mail was seen as an attractive target due to limited law enforcement, ease of access and the potential to find checks, bearer bonds, cash, jewelry and other assets. This risk persists today for individuals who send or receive checks through the United States Postal Service. Bank statements can disclose sensitive details, including line-of-credit balances, account numbers and bank routing numbers. Such information can facilitate the creation of fraudulent checks and lead to unauthorized withdrawals. One prevalent contemporary scheme involves stealing account statements from mailboxes and producing counterfeit checks, which are then deposited remotely, often in locations distant from the original account holder. The greater the distance between the account holder and the depositor, the more challenging it becomes for local law enforcement to pursue an investigation. To mitigate these risks, organizations should consider requiring customers to enroll in electronic statement delivery, thereby more tightly controlling the distribution and receipt of sensitive documents. Additionally, limiting the amount of information included on statements can reduce the value of any data obtained by unauthorized parties. Conclusion Protecting financial accounts from scams and fraud requires vigilance from both banks and their customers. By implementing proactive policies and encouraging secure practices, banks can help reduce the risks associated with dormant accounts and intercepted statements. Customers should also stay informed and utilize electronic banking options whenever possible to safeguard their information. Ultimately, a partnership between financial institutions and their clients is essential in the ongoing effort to combat financial crime. 1. NIST SP 800-63-3, Appendix A – Definitions and Abbreviations. Definition of “Multi-factor Authentication.” The NIST Digital Identity Guidelines also describe different types of multi-factor authentication solutions and their relative levels of security. 20 NEBRASKA BANKER
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