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Californians for Banking Reform Says Time Is Now for Banks to Provide the Same Protections to Small Business, Non-Profits and Municipalities That are Afforded to Individual Consumers

Jun 27 2013 12:00AM

Marketwire

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FRESNO, CA -- (Marketwired) -- 06/27/13 -- "Over the past year, we have fielded concerns about cyber security and ACH fraud from small businesses all over California regarding current banking law and internal bank policies," said Andrew Grundman, Chief Executive Officer of Californians for Banking Reform (CBR).

CBR members have approached the association about instituting reforms through participation in the regulatory and legislative process, including sponsoring legislation that would provide a level playing field for California based small businesses, non-profits and municipalities who are victims of ACH fraud.

"One especially troubling example was brought to light in a recent article about a central valley banking institution." According to Jon Fleischman, editor of the influential California blog FLASHREPORT.ORG, CBR is now aware of banking irregularities caused by Eastern European operatives fraudulently causing bank wire transfers out of a customer's account without their knowledge. Based on the article, United Security Bank eventually replaced funds stolen from a small business's account, but not after a series of legal efforts funded by the customer.

"Our organization has been watching this issue, and is considering partnering with organizations such as CLASP, who continue to lead the way on issues like providing reform of the laws and regulations that prevent commercial bank accounts from having the same protections as individual consumers do from ACH Fraud. Small businesses cannot afford expensive litigation regarding business funds improperly released due to fake wire transfer requests -- this is yet another example of why both internal banking procedures and State and Federal law overseeing these procedures need to be reviewed and strengthened," Grundman said.

CBR welcomes additional information, suggestions and confidential tips to help expose or provide examples of how the policies and procedures used by California banking institutions harm small business, consumers and the state economy. For more information or to get involved, visit the CBR website.

CBR is an unincorporated nonprofit association comprised of small business owners and consumers concerned about how current banking practices and regulation inhibit the introduction and growth of small businesses, and generally cause harm to consumers and small businesses in the State of California.



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Source: Marketwire


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