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Article: Is your wire transfer system secure?
- Article from:
- Internal Auditor
- Article date:
- June 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 Institute of Internal Auditors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Wire transfer systems present the single highest risk that financial institutions (FIB) face. Each day American FIs alone electronically transmit billions of dollars among themselves via Fedwire, the Federal Reserve's national wire transfer system. These wires can be for customers, for FI investment purposes, for payments of FI obligations, and for virtually any other type of financial transaction requiring the immediate exchange of funds.
In a single day, many FIs transmit wires that total more than their assets. A single wire transfer can frequently exceed the total annual earnings of the FI. Without adequate controls, FIs run the risk of becoming instantly ...