In the Headlines
April 14, 2020

Banks Must Watch Out For Fraud Revelations Amid Pandemic

Partner Brian Hayes was interviewed for a Law360 article about steps banks can take to protect themselves and their customers amid the economic downturn spurred by the COVID-19 pandemic. Much as the 2008 financial crisis saw the unraveling of numerous fraud schemes, most notably Bernie Madoff's Ponzi scheme, so, too, does the current crisis have the potential to reveal similar schemes. Mr. Hayes, who leads Holland & Knight's Midwest White Collar Defense and Investigations team, explained that banks should expect increased scrutiny from regulators because of what occurred in the past. He also detailed steps banks should take to demonstrate their commitment to protecting themselves, such as reviewing transaction monitoring protocols and reminding front-line staff of fraud indicators.

"This is going to be on the regulators' minds, definitely," he said. "That's why this is a good time for banks and other financial institutions to recognize this is an area law enforcement and regulators are going to be interested in and begin taking some steps."

READ: Banks Must Watch Out For Fraud Revelations Amid Pandemic

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