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Wire contracts vs. bank actions

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Question: 
Our wire transfer contract with business customers states that they are responsible for any fraud losses. Will this protect our bank?
Answer: 

Appropriate contract provisions is a great step, but its not guaranteed that your bank won’t still be liable. Many lawsuits levied against banks are due to claims that the bank failed to offer or use commercially reasonable security. Despite strong contracts, issues like this can actually cause the bank to be liable, regardless of what the contract says.
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First published on 04/28/2019

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