Negligent Failure to Detect or Prevent
Fraud: Financial Institution Liability.

C5 Fraud, Asset Tracing & Recovery Miami

Many fraudulent schemes involve the use of banking facilities because most money transfers and trading still must be done through banks. Banks and their employees are, therefore, in a position that may enable them to spot and block or report suspected fraud. But what about civil liability for failing to spot potentially fraudulent behavior?
Does a financial institution owe a duty of care not to execute the customer’s order if it knows the order to be dishonestly given, or shuts its eyes to obvious dishonesty, or acts recklessly in failing to make inquiries?

Join us as we answer these questions and discuss:

• The scope of a bank’s liability where it is or might be on notice of a fraud committed by the customer’s agent reflect attractiveness of A line of developing English and Caribbean cases about targeting a bank/financial institution when the fraudster is nowhere to be found.
• When will a bank be considered “on notice” of a dishonest director or agent’s fraud?
• And what about non-bank financial services entities?
• What sort of strategies are effective in pursuing such claims?
• What about in defending such claims on behalf of banks?