Arbitrator Finds For National Bank, Rejecting Claims That It’s Wire Transfer Security Procedures Were Not “Commercially Reasonable”

Claimant was the victim of a business email compromise fraud. Claimant’s Financial Controller initiated several large wires transfers in reliance on fraudulent email instructions. Claimant brought claims against its bank under Article 4A of the Uniform Commercial Code, alleging that the bank did not have commercially reasonable security procedures in place. The Arbitrator rejected all of claimant’s claims, entering an award for the bank.