The Federal Reserve Board proposes to expand the operating hours for the National Settlement Service (NSS) and the Fedwire Funds Service (Fedwire). NCLC supports the proposed rule to expand the operating hours of the NSS, but urge the Federal Reserve Board to take additional measures to address and prevent fraud occurring via Fedwire before expanding its operating hours.
In the comments, NCLC describes the widespread and devastating impact of bank-to-bank wire transfer fraud and recommendations for addressing fraud through Fedwire, including developing a system to receive mandatory reporting of fraudulent and fraudulently induced Fedwire payments; requiring participating banks to enable consumer reporting of unauthorized and fraudulently induced bank-to-bank wire transfers over Fedwire; requiring banks to investigate claims of unauthorized and fraudulently induced bank-to-bank wire transfers over Fedwire; and promoting information sharing between the Federal Reserve Board and Fedwire participants.
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