A financial institution crime coverage that relates to the erroneous transferring
of funds to or from the checking or savings account of a customer based upon
instructions fraudulently transmitted by a nonemployee. There are two categories
of this type of fraud coverage, voice initiated and telefacsimile, and they
may be added by rider to the bank or credit union bond or issued separately
under the financial institution computer crime form.
Links for IRMI Online Subscribers Only: