The More You Know Can Hurt You: Court Rules Financial Institutions Need 'Actual Knowledge' of Mismatches for ACH Scam Liability
By EsqSocial Corporation 16/04/25
On March 26, the US Court of Appeals for the Fourth Circuit issued a decision that has important ramifications for banks and credit unions that process millions of Automated Clearing House (ACH) and Electronic Funds Transfer (EFT) transactions daily, some of which are fraudulent or "phishing scams." In Studco Buildings Systems US, LLC v. 1st Advantage Federal Credit Union, No. 23-1148, 2025 WL 907858 (4th Cir. amended Apr. 2, 2025), the Fourth Circuit held that financial institutions typically...
By: Katten Muchin Rosenman LLP