Litigating Wire Transfer Fraud: UCC Article 4A, BEC Schemes, and the First 72 Hours That Define Recovery

Robert F. Tom, Shareholder | Baker, Donelson, Bearman, Caldwell & Berkowitz, PC

Robert F. Tom is a shareholder in the Litigation and Dispute Resolution Group at Baker Donelson, where he focuses on complex commercial litigation and financial services disputes. His practice centers on representing financial institutions, lenders, and businesses in matters involving banking operations, electronic payments, commercial contracts, and fraud-related disputes. Tom regularly advises clients on issues arising from wire transfers, payment systems, and financial transactions, and he has extensive experience handling litigation involving financial institutions and banking regulations. His work includes representing clients in state and federal courts in matters involving commercial disputes, banking liability issues, and operational risks affecting financial institutions.

• Education & Credentials
  • Robert F. Tom earned his J.D. from the University of Tennessee College of Law and his B.A. from the University of Tennessee. He is admitted to practice law in Tennessee and represents clients in state and federal courts in complex litigation matters involving financial institutions and commercial disputes.
• Recognition & Leadership
  • Tom has been recognized for his work in litigation and financial services matters within the legal profession. Through his role at Baker Donelson, he contributes to the firm’s litigation practice by advising financial institutions and corporate clients on complex disputes involving banking operations and commercial law.
• Professional Involvement
  • In addition to his litigation practice, Tom contributes to legal discussions and publications addressing developments in financial services law, banking litigation, and commercial disputes. His work often focuses on legal and operational issues affecting financial institutions, including electronic payments and fraud-related litigation.
• Experience
  • Tom represents banks, financial institutions, and corporate clients in complex commercial disputes, including matters involving wire transfers, payment processing, fraud allegations, and contractual disputes. His experience includes handling litigation involving financial transactions, advising clients on risk management strategies, and resolving disputes involving banking operations and financial regulations.

Shelli J. Clarkston, Of Counsel | Spencer Fane

Shelli Clarkston is a partner at Spencer Fane LLP who focuses her practice on financial services litigation, regulatory compliance, and complex commercial disputes. She represents banks, lenders, and other financial institutions in litigation involving lending transactions, fraud-related claims, and banking operations. Clarkston advises financial institutions on regulatory and operational issues affecting their business, including risk management and dispute resolution related to financial transactions. Her practice includes representing financial institutions in state and federal court and assisting clients in navigating legal issues arising from banking operations and financial services regulations.

• Education & Credentials
  • Clarkston earned her J.D. from the University of Kansas School of Law and her B.S. from the University of Kansas. She is admitted to practice law in Kansas and Missouri and represents financial institutions and commercial clients in state and federal courts.
• Recognition & Leadership
  • Clarkston has developed a reputation for advising financial institutions on complex litigation and regulatory issues affecting the banking industry. Through her work at Spencer Fane, she contributes to the firm’s financial services practice by assisting clients with disputes involving banking operations and commercial transactions.
• Professional Involvement
  • Clarkston participates in legal and professional organizations connected to the banking and financial services industries. She engages with industry professionals and legal practitioners on developments affecting financial institutions and the regulatory environment governing financial transactions.
• Experience
  • Her experience includes representing financial institutions and lenders in commercial litigation, financial services disputes, and regulatory matters. Clarkston advises clients on issues arising from banking operations, lending practices, and financial transactions, and she assists institutions in managing litigation risks associated with fraud claims and commercial disputes.

Elizabeth Roper, Partner | Baker & McKenzie LLP

Elizabeth Roper is a partner at Baker McKenzie and a member of the firm’s Cybersecurity, Data Privacy, and Technology practice. She advises multinational organizations on cybersecurity incidents, data privacy compliance, and complex regulatory investigations. Roper regularly counsels clients on responding to cyber incidents, managing data breaches, and navigating global privacy and cybersecurity laws. Her practice involves coordinating cross-border investigations, advising companies on regulatory obligations following cyber events, and helping organizations develop strategies to manage digital risk.

• Education & Credentials
  • Roper earned her J.D. from Georgetown University Law Center and her B.A. from Georgetown University. She is admitted to practice law in the District of Columbia and Virginia and advises clients on legal and regulatory issues involving cybersecurity, data protection, and technology-related risks.
• Recognition & Leadership
  • Roper is recognized within the legal community for her work in cybersecurity and data privacy matters. Her leadership within Baker McKenzie includes advising clients on complex cyber incidents and regulatory investigations affecting organizations operating in multiple jurisdictions
• Professional Involvement
  • She participates in professional organizations and legal initiatives focused on cybersecurity, data protection, and emerging technology risks. Through her work, she contributes to discussions addressing evolving cybersecurity threats and the legal frameworks governing data protection and cyber incident response.
• Experience
  • Roper advises organizations on cybersecurity preparedness, data breach response, and regulatory investigations related to cyber incidents. Her experience includes leading incident response efforts, coordinating cross-border regulatory engagement, and helping companies address legal risks associated with cyber threats such as business email compromise and other forms of cyber-enabled fraud.

I. Article 4A and the Anatomy of Wire Fraud Litigation | 1:00pm – 1:30pm

This section will cover the most common scenarios in which wire fraud occurs resulting in consumer bank litigation, what Article 4A provisions are involved, typical claims brought by an accountholder, and defenses to those claims.

This session examines how wire transfer fraud disputes arise and how courts analyze liability under UCC Article 4A and Regulation J. Attorneys will review common fraud scenarios that lead to litigation between banks and accountholders, including payment diversion and compromised email instructions. The discussion will also address the claims typically asserted in these disputes and the defenses financial institutions rely on when challenging liability.

II. The First 72 Hours After a Fraud: Recovery, Coverage, and Litigation Positioning | 1:30pm – 2:00pm

This session focuses on the first 72 hours after a BEC or wire fraud incident, outlining rapid response steps that can maximize recovery and limit liability. Attendees will review coordinating bank recalls, law enforcement notifications, and evidence preservation, while managing communications with clients, financial institutions, and insurers. The session will also address early litigation positioning and strategies to protect recovery and coverage options.

This session focuses on the critical response window immediately following a BEC or wire fraud incident and the legal steps that can influence recovery and liability exposure. Participants will learn how to coordinate bank recall efforts, law enforcement engagement, and evidence preservation while managing communications with clients, insurers, and financial institutions. The discussion will also highlight how early response decisions can shape litigation posture and affect potential disputes between banks, customers, and insurers.

Break | 2:00pm – 2:10pm

III. Business Email Compromise/Fund Transfer Fraud: Identifying and Responding to Current Threat Patterns | 2:10pm – 3:10pm

Fund transfer fraud, or “business email compromise,” continues to be one of the most widespread and costly forms of cybercrime worldwide, accounting for 73% of cyber incidents reported to the FBI in 2024 with losses of almost $3 billion that year. This session will discuss the evolution of business email compromise fraud, including commonly targeted industries; threat actor tools, techniques, and protocols (TTPs); hallmarks of BEC threats; and the use of emerging technologies to perpetuate these frauds. We will also discuss best practices for responding to a BEC event, including containment, engagement with law enforcement, and remediation.

This session explores how modern business email compromise schemes operate and why they continue to generate significant financial losses and legal disputes. Participants will examine the techniques used by threat actors, the industries and individuals most frequently targeted, and the indicators that a payment diversion scheme may be underway. The session will also address practical response strategies, including incident containment, coordination with law enforcement agencies such as the FBI and FinCEN, and steps organizations can take to mitigate ongoing risk.