Week of July 22

July 23, 2024

In This Issue…

From Adrian’s desk …
Commercial new account fraud rears up in Oklahoma
Banking associations: Banks cannot fight financial scams alone
OBA scheduled Oktoberfest Golf Tournament
OBA education corner …

From Adrian’s desk …

By Adrian Beverage
OBA President & CEO

Just some random tidbits that might be of interest to our bankers this week!

• • •

I’m currently in San Diego for a conference … but NOT for Comic Con! Although, I’m sure our communications director, Jeremy Cowen, would have been happy to lend me some Mr. Spock or Captain Kirk socks if I said I was going to poke my head inside the world-famous event!

• • •

The OBA’s Emerging Leaders Academy was featured in an article in the Journal Record last week. It highlighted the partnership between the OBA and Francis Tuttle Technology Center in putting together many parts of the Academy.

Speaking of the Academy, we’re currently accepting applications for the 2024-25 version!

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The biggest news of the week – maybe the year – came on Sunday when President Biden announced he was withdrawing from the upcoming presidential election. While rare, it’s not unheard of to see a sitting president bow out of the election process. The most recent was Lyndon Johnson in late March 1968. Before him, Harry Truman stopped his candidacy in March 1952. There were also a few other examples in the 19th century.

It now seems a foregone conclusion Vice President Kamala Harris will be the Democratic Party nominee. How this all affects the race is anyone’s guess at this point. Stay tuned!

• • •

It’s been the same old, same old, for my Chicago Cubs since the All Star break. Two wins, two losses and tires spinning in the mud.

I had hoped the momentum of winning eight of 11 before the break would carry over, but it appears it was fool’s gold. Now, even the normally mild-mannered manager, Craig Counsell, is getting into post-game spats with reporters.

Commercial new account fraud rears up in Oklahoma

There is a new fraud trend hitting Oklahoma financial institutions involving U.S. Treasury checks, ID theft and new accounts.

Losses can be significant as many of these checks exceed $100,000. Please share this information will all areas of responsibility involving new business accounts and check deposits.

Legitimately issued checks are being stolen in bulk. Individuals involved in the scheme travel to various states to register new businesses in the name of the check payees. After the business registration is accepted, the perpetrator will open a new business account and deposit a large dollar U.S. Treasury check. Funds are immediately removed any way possible.

If Treasury determines a check has been paid over a forged or unauthorized endorsement, the Bureau of the Fiscal Service, may reclaim the amount of the check from the presenting bank or any other endorser that breached its guarantee of endorsement (31 CFR 240.8).

Red Flags:

New business account.
Out of state ID.
In-state address (possibly vacant or for sale).
In-state utility bill (possibly fake).
Recently registered business and/or EIN filing.
Check payable to business with out-of-state address.

Using the Treasury Check Verification system will NOT work in this scheme and all security features will be present.

How do you stop this??

Alert your new accounts staff to be aware of this scheme and to bring any suspicions to their supervisor.
Monitor new business accounts opened with a new or recent deposit greater than $10,000 for at least 60 days.
If the deposit consisted of a U.S. Treasury Check, place a hold on the funds pending verification (Google search the business name and reach out to what is probably the legitimate business, with an out-of-state address matching what is on the check).
Use the IRS External Leads Program to submit your concerns/red flags. Hold the funds until a response is received (usually within 48 hours).
If you are a member of crimedex.com, post an alert to the OK MAFIA group to alert others

Victimized by this scheme?

File a complaint at ic3.gov.
Contact the U.S. Secret Service, Oklahoma City Field Office, (405) 272-0630.
Preserve all evidence (original checks, surveillance, etc.).
File a criminal complaint with your local police.
Start your recovery action plan with financial institutions receiving the deposited funds.
Email sharon@oba.com should you have any questions or need assistance.

Banking associations: Banks cannot fight financial scams alone

Speaking of fraud, the American Bankers Association and three bankers associations said in recent joint statement to lawmakers that banks are only one contributor to the overall safety and security of the payments ecosystem and cannot single-handedly prevent criminals from defrauding consumers or financial institutions.

The statement was in response to a House Permanent Subcommittee on Investigations hearing on Tuesday on Zelle and fraud. In their statement, the associations referenced their May 21 statement to the subcommittee in which they noted banks’ long history of improving and innovating to protect their customers. The groups instead argued addressing the problem requires a multi-prong approach, which includes enhancing collaboration with law enforcement and regulators, increasing consumer education, and developing a national strategy for scam and fraud prevention and response.

OBA schedules Oktoberfest Golf Tournament

Show off your golfing skills or simply join your banking peers as a social registrant at the 2024 OBA Oktoberfest Golf Tournament on Oct. 21 at Belmar Golf Club in Norman.

The tournament fee is $175 and the registration deadline is Oct. 14. The tournament will begin with registration and lunch. Immediately following the tournament, we will hold an awards ceremony. Sign up now to reserve your spot. We hope to see you on the course!

Not golfing? Join your banking peers as a social attendee for lunch, refreshments and fellowship on the patio. Social attendee registration fee is $50.

Click here to access the registration form. If you are interested in sponsorship opportunities, contact Thi Pham.

Tournament Schedule
10 a.m. — Registration
11 a.m. — Lunch
12 p.m. — Shotgun Start
Immediately Following Golf — Awards

OBA education corner …

It’s amazing what you can see while toodling around our state! For example, did you know a scene from the great 1988 movie, Rain Man, was filmed in western Oklahoma?

In Rain Man, there’s a part where Tom Cruise and Dustin Hoffman pull over at a dilapidated gas station to make a phone call at a phone booth (remember those?!). The scene was filmed in Cogar, Oklahoma, and still looks similar to when the movie was released (minus the phone booth).

While educating yourself about how subtlety famous parts of our state can be, also take a second to educate yourself with our continuing education opportunities for bankers!:

Do’s and Don’ts on Checks, July 30, webinar — This webinar will benefit tellers, head tellers, cashiers, managers, branch operations, officers who approve checks and deposit representatives who work with checks and deposits.
Current Expected Credit Losses (CECL) 2-Part Series, July 30 & Aug. 15, webinar — The new CECL model is now effective for reporting entities. This two-part series will provide an overview of the new guidelines.
FedNow Risk Assessments: What You Should Know, Aug. 1, webinar — This comprehensive session will navigate through the complexities of real-time payment systems, spotlighting the strategies and frameworks necessary for identifying, analyzing and mitigating risks.
Commercial & Industrial Credit Analysis to Determine Financial Strength, Aug. 5, webinar — This course is designed to address the needs of bankers and credit analysts by reinforcing their credit analysis skills.
Vendor Management Program: How Model Risk Fits In, Aug. 5, webinar — Financial institutions increasingly relying on third-party providers to offer their products and services creates increased risk.
Community Reinvestment Act (CRA) Deep Dive – All Day Streaming, Aug. 6, webinar — This all-day streaming session will go over the details of the new CRA and point out important differences between it and current requirements.
Advertising Compliance, Aug. 7, webinar — Advertising presents a unique challenge when it comes to regulatory compliance due to the fact that you often have to deal with many different regulations at one time.
Risks (and Rewards) of Artificial Intelligence in Banking, Aug. 9, webinar — In this webinar we’ll discuss the concerns and risks of AI, so that you can properly monitor and establish controls for these technologies and best manage regulatory expectations as you succeed.
2024 OBA Compliance School, Aug. 19-23, Oklahoma City — Students will return to their banks equipped to deal with compliance regulations that impact lending practices and deposit functions as well as other related federal and state laws and regulations.
2024 Supervisor Bootcamp, Sept. 4-Tulsa; Sept. 5-Oklahoma City — This training will help take your expertise to a new level as you learn how to collaborate and coach your employees to excel on the job.