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91 N.D. L. Rev. 329 (2015)
Increasing the Role of Agency Deference in Curbing Online Banking Fraud

handle is hein.journals/nordak91 and id is 337 raw text is: INCREASING THE ROLE OF AGENCY DEFERENCE IN CURBING ONLINE BANKING FRAUD STEPHANIE L. TANG* ABSTRACT Over the past few decades, online banking has gone from a seldom- used, novel technology to one used by over seventy percent of all bank account holders. While online banking may present many benefits, it also opens up consumers to many unknown risks. Fraud is one of the biggest risks associated with online banking. Under Article 4A of the Uniform Commercial Code, a bank is typically not liable for losses due to fraudulent transfers if it has followed commercially reasonable security procedures to verify the transaction. Unfortunately, this issue has been sparsely litigated in American courts, and the small handful of cases available offers little guidance to protect either consumers or banks. In Part II, this article summarizes the history of online banking and presents the challenges banks face in growing consumer confidence. Following in Part III, the article proceeds to analyze interagency guidance on curbing online banking fraud and prior cases assessing the commercial reasonableness of banking security procedures. In Part IV, the article then explores approaches taken by the European Union and Malaysia in combating online banking fraud and examines the crucial role of agency deference in other areas of U.S. banking law, including bank charter applications and the interpretation of the Glass-Steagall Act. Consequently, in Part V, this article recommends that banks and courts should give increased deference to existing interagency guidance and look to current, successful initiatives developed in other countries in an effort to increase consumer confidence in online banking and to protect banks from future liability. * Associate Attorney at Hurst, Robin, & Kay, LLC; J.D., magna cum laude, University of Illinois, 2015; B.A., Northwestern University, 2012. 1 wish to thank Summer Kim for her mentorship and guidance, including but certainly not limited to the content of this article. I would also like to thank my parents for their endless encouragement and Mark Scott for his undying love and support throughout the writing process.

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