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F ederal Reser ve Ba n k o f D allas
DALLAS. TEX A S

75222

C i r c u la r No. 77-25
F e b r u a r y 14, 1977

^ IM P O R T A N T N O T IC E **

T O T H E E X E C U T IV E O FFIC E R
OF A L L MEMBER BANKS IN T H E
E L E V E N TH FE D E R A L RESERVE D IS T R IC T :
A ll m em ber b a n ks in the E lev en th D is tr ic t should be on the a le r t for
p o ssib le attempts to obtain fund s b y means of fr a u d u le n t w i r e tr a n s fe r s of fu n d s .
T h is w a r n in g is the r e s u lt of s ix attempts in N o rth and South Dakota o v e r the past
two to th r e e w e e k s . T w o of the instances w e r e actual attempts a t fr a u d u le n t t r a n s ­
fe rs of fu n d s , w h ile the o th e r four in v o lv e d teleph one calls from an in d iv id u a l
a ttem pting to obtain inform ation r e la tiv e to in te r n a l w i r e tr a n s fe r p ro c e d u re s
e it h e r at a m em ber b a n k o r at the Fe dera l R e s e rv e B a n k . One common c h a r a c te r ­
istic associated w ith fo u r of th e co nversation s was th a t it w as a male voice w ith a
deep s o u th e rn d r a w l .
We a r e u r g in g a ll m em ber banks to r e v ie w t h e i r in te rn a l p ro c e d u re s
r e g a r d in g w i r e tr a n s fe r s of funds operatio n s in term s of protection a g a in s t f r a u d ­
u le n t tr a n s fe r s of fu n d s , e s p e c ia lly in the a rea of tr a n s fe r s of funds requests
accom panied b y a code w o rd fo r auth e n tic atio n p u rp o s e s . T h e fo llo w in g s ugg es­
tions a r e p r o v id e d fo r y o u r c o n sid e ra tio n w h e n r e v ie w in g y o u r o p e ra tio n s .
• Code w o rd a u th e n tic atio n lists should be sec u re d and should
not be a v a ila b le o r accessible fo r u n a u th o riz e d persons to see,
c o p y , or s te a l.
• T e le p h o n e requests fo r tr a n s fe r s from y o u r custom ers should be
e ith e r a u th e n tic ate d o r v e r if ie d in some fashio n.
• Em ployees should r e p o r t a n y tr a n s fe r re q u e s t th a t seems unusual
o r out of the o r d i n a r y to b a n k m anagem ent.
• Employees should be p o s itiv e that it is the Fe dera l R e s e rv e Bank
c a llin g w h e n r e c e iv in g incoming tr a n s fe r s of funds n o tific a tio n .
I f th e r e is a n y q ue stion that a telephone notification is u nusual o r
p o te n tia lly q u e stio n ab le in a ny m a n n e r, e . g . , an u n u s u a lly la rg e
o r t h ir d p a r t y t r a n s f e r , a r e tu r n colle c t teleph one call to the
F e d e ra l R e s e rv e B a n k should be made fo r v e r ific a t io n .

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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• Funds fo r incoming tr a n s fe r s should not be paid out to customers
unless e it h e r h a rd copy o r p o s itiv e n otification has been re c e iv e d
from the Federal R e s e rv e B an k o r p o s itiv e id e n tific a tio n has been
made.
• Employees should be in s tru c te d not to g iv e out a n y inform ation
on in te rn a l tr a n s fe r s of funds p ro c e d u re s o r a u th entication code
w o rd lists o r p r o c e d u r e s .
I f you have a n y questions r e g a r d in g this m a tte r , please contact C . L.
V ic k a t (21 a) 6 5 1 -6 3 3 3 , o r any o ffic e r at o u r El Paso, Houston, o r San Antonio
B ra n c h .
S in c e r e ly y o u r s ,
R o b e rt H . B oy k in
F ir s t V ic e P re s id e n t


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102