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Who Eats the Loss When a Deepfake Authorizes the Wire? Allocation and Coverage

Allocate deep-fake wire-fraud losses with confidence—apply UCC Article 4A, defeat coverage exclusions, and advise clients on crime and cyber policies before and after the loss strikes.

2026-08-27 13:00:00

2 hours

Program Details

2026-08-27 13:00:00

Program Details

2026-08-27 13:00:00

Over 1,000+ webinars

2026-08-27 13:00:00

2 hours

Course Overview

The Wire Cleared—Now Two Parties Fight Over Who Pays

2026-08-27 13:00:00

A deepfake voice authorizes a payment order, the money is gone, and the customer and the bank each insist the other bears the loss. UCC Article 4A decides that fight—§§4A-202, 4A-203, 4A-204, and 4A-207—through the commercially reasonable security procedure safe harbor, the good-faith requirement, and the misdescription-of-beneficiary rule. The Fourth Circuit’s March 2025 Studco decision and the unsettled NYAG v. Citibank EFTA dispute show how unresolved these allocations remain.

The same loss then tests crime and cyber policies, where the voluntary parting exclusion, a direct-loss causation circuit split, sublimit, and new 2025–2026 deepfake endorsements determine whether anyone recovers. Attorneys advising banks, businesses, or insureds are already exposed when funds-transfer agreements and coverage towers go unexamined.

You’ll be able to identify which party bears loss under competing fact patterns, place and position coverage, and defeat the exclusions underwriters now treat as conditions.

Format

CLE Credit

2h CLE Credits

Level

Intermediate

Length

2

Key topics that will be covered

01
Loss allocation
The §4A-202/203/204 framework allocates wire-transfer losses between customers and banks.
02
Security procedures
Commercially reasonable security procedures provide a safe harbor in the deepfake era.
03
Misdescription
Misdescription of beneficiary applies under the Fourth Circuit’s March 2025 Studco decision.
04
EFTA regime
EFTA and Regulation E offer an alternative loss-shifting regime for transfers.
05
Coverage architecture
Crime versus cyber policies determine where deepfake-induced transfer losses ultimately land.
06
Voluntary parting
The voluntary parting exclusion and direct-loss causation circuit split affect recovery.

Program schedule

clock 1:00 pm - 2:00 pm EST

Allocating Deepfake Wire Losses Between Customer and Bank Article 4A

This session examines how UCC Article 4A allocates wire-transfer losses between customers and banks when a deepfake authorizes the payment order, working through the §§4A-202 through 4A-207 framework, the commercially reasonable security procedure safe harbor, and the misdescription-of-beneficiary rule using Studco.

John E. LandeJohn E. Lande
clock 2:10 pm - 3:10 pm EST

Crime And Cyber Policy Coverage for Deepfake-Induced Wire Transfe

This session examines how crime and cyber policies respond when an AI-generated deepfake induces an employee to authorize a wire transfer, addressing the correct coverage tower, the voluntary parting exclusion, direct-loss causation split, sublimit exposure, and new deepfake-specific endorsements and exclusions.

Daniel J. HealyDaniel J. Healy
John E. Lande

John E. Lande

Dickinson, Bradshaw, Fowler & Hagen, P.C.

Daniel J. Healy

Daniel J. Healy

Brown Rudnick LLP.

John E. Lande

John E. Lande

Dickinson, Bradshaw, Fowler & Hagen, P.C.

John Lande counsels banks on check and wire fraud, cybersecurity, internal and criminal investigations, insider transactions, collections, examinations, and enforcement actions, and helps institutions build practices designed to keep those problems out of litigation. His client base centers on financial institutions, alongside privately held businesses and municipal utilities, and he chairs the Cybersecurity, Data Breach, & Privacy practice group at Dickinson Bradshaw. His courtroom work spans Iowa district court, federal court, and appeals before the Iowa Court of Appeals, the Iowa Supreme Court, and the Eighth Circuit, with regulatory appearances before the Iowa Division of Banking, the FDIC, and the Federal Reserve in Iowa and Washington, D.C.

Education & Credentials

John earned his J.D. from the University of Iowa College of Law with distinction, receiving the Willard L. Boyd Public Service Distinction, after completing a B.A. cum laude at Drake University. He is admitted to practice in Iowa and before the U.S. Supreme Court, the U.S. Court of Appeals for the Eighth Circuit, and the federal district and bankruptcy courts for both the Northern and Southern Districts of Iowa.

Recognition & Leadership

Chambers USA has ranked John as a Leading Individual in Litigation: General Commercial Law in Iowa in every edition from 2019 through 2026, after naming him an Up and Coming leader in 2018; its editors note his regular representation of financial institution clients within a broad commercial litigation practice. The Best Lawyers in America has recognized him in Banking and Finance Law (2023–2026 editions), Commercial Litigation and Privacy and Data Security Law (2020–2026 editions), and Construction Law and Litigation - Construction (2026 edition). Earlier honors include the Iowa Defense Counsel Association’s 2014 Rising Star Award and recognition as a Future Leader of the Bar by the Iowa State Bar Association in 2011.

Professional Involvement

John’s speaking and writing calendar runs heavily to payments fraud and bank liability. He presented “Industrial Fraud System in Asia and U.S. Wire Fraud” at the 2025 Dickinson Bradshaw Banking Law Seminar, taught “Liability for Unauthorized Wire Transfers under the Uniform Commercial Code” as a 2023 Lexology Virtual Masterclass, and covered “Real Time Payments Origination Liability” and “Check Fraud” at the 2024 seminar. His recent writing for the firm’s Iowa Banking Law and Iowa Cybersecurity Law Blogs includes “Wire Fraud in the Age of AI” (2026), “Banks May Be Liable for Fraudulent Consumer Wire Transfers” (2025), and “After a Wire Transfer, That’s Not Your Money Anymore” (2022). He is a member of the Iowa Defense Counsel Association, the American Bar Association’s Tort Trial and Insurance Practice Section, the Iowa State Bar Association, and the Polk County Bar Association.

Experience

John’s practice has tracked bank fraud liability for more than a decade, from corporate account takeover programs such as “Understanding Liability: Strategies for Avoiding Loss from Corporate Account Takeover” (2014), through wire transfer agreement counseling dating to “Make Sure Your Wire Transfer Agreements Are Wired Properly” (2013), to depositor-liability analysis in “Banks and Depositors Agree to Disagree: Who is Responsible for Unauthorized Wire Transfers?” (2018). His reported matters include In re AgriProcessors, Inc., 859 F.3d 599 (8th Cir. 2017), in which he represented a financial institution on the treatment of loan overdrafts, and First Security Bank & Trust Co. v. Vegt, 511 B.R. 567 (N.D. Iowa 2014), a bank-side federal appeal over a priming lien in a Chapter 12 bankruptcy. He also litigates business torts, contract disputes, agency regulatory actions, and property tax matters across Iowa state and federal courts.
Daniel J. Healy

Daniel J. Healy

Brown Rudnick LLP.

Daniel Healy is a partner in Brown Rudnick’s Litigation & Arbitration Practice Group, based in the firm’s Washington, D.C. office, where he joined the Commercial Litigation practice in January 2023. A seasoned trial attorney with more than 20 years of extensive courtroom experience in courts across the country, Dan represents policyholders seeking insurance coverage. He has successfully obtained coverage under numerous policy types, working with clients from a variety of industries, including technology companies, financial consultants, manufacturers, railroads, banks, financial service providers, retailers, medical service providers, and food and beverage providers. He is the author of Cyber Insurance Claims, Case Law, and Risk Management, a leading treatise on cyber insurance. In addition, Dan regularly represents clients in disputes involving intellectual property rights and in proceedings before the U.S. Patent and Trademark Office, and he has negotiated copyright and trademark resolutions, including licensing agreements, involving state, federal and international intellectual property rights. He also counsels companies that operate with blockchain technology on potential risks.

Education & Credentials

Healy received a B.A. from Siena College and a J.D. from Fordham University School of Law. He has been licensed in Washington, D.C. since 2002.

Recognition & Leadership

Dan has been selected by his peers for inclusion in The Best Lawyers in America for Insurance Litigation since 2018, and in 2023 he was named by The Best Lawyers in America as Lawyer of the Year for Insurance Litigation. He sits on Law360's editorial board for Insurance Authority Specialty Lines, is a member of the American College of Coverage Counsel, and is listed as a Super Lawyer as well as in Who's Who in America. He was selected for inclusion in the American College of Coverage Counsel in 2019 and remains a member. He has been recognized by Super Lawyers for Insurance Coverage in 2018 and from 2020 through 2025.

Professional Involvement

Earlier in his career, Dan served as a Trial Attorney for the U.S. Department of Justice, Tax Division, where he received an Outstanding Attorney or Special Commendation award each year he was there and served as the E-Discovery Coordinator for the Tax Division. He previously was a partner at Anderson Kill, where he began his legal career, and he returned there as a partner after his government service, serving as deputy co-chair of its Cyber Insurance Recovery practice. At his prior firm he also was a member of the Blockchain & Virtual Currency group and the Financial Services Industry team. He has appeared before the Trademark Trial and Appeal Board and has litigated claims of unfair competition, copyright infringement and patent infringement, and has represented trademark owners in disputes involving domain names, cybersquatting, online infringement and reverse confusion.

Experience

Dan represented Phaedra Partners, a software development company, in a lawsuit against The Travelers Property Casualty seeking insurance coverage for business income and business interruption losses arising out of property damage, which settled just after Phaedra filed its summary judgment motion. Among his notable matters prior to joining Brown Rudnick, he represented Amtrak in defense of a declaratory judgment action filed by London Market insurers that had denied coverage for employee injury claims and environmental liabilities, winning an eight-figure jury verdict from the trial of an initial test environmental site, with settlements following. He represented a national medical provider seeking Representations and Warranty coverage for breach of representations and warranties in a sale agreement, achieving resolution without litigation or arbitration. In McCauley v. First Unum Life Insurance, he drafted the appellate briefs that resulted in a landmark Second Circuit decision on disability coverage that completely reversed the trial court and remanded for a damages determination, and he appeared as amicus curiae before the Maryland Court of Appeals in a challenge to a state law requiring insurers to demonstrate prejudice when denying coverage. He also represented a streaming music company in an insurance coverage dispute over Representations & Warranties coverage for significant breaches by sellers hidden in accounting errors, resolving the quantum of loss at a multi-day mediation.
John E. Lande

John E. Lande

Dickinson, Bradshaw, Fowler & Hagen, P.C.

John Lande counsels banks on check and wire fraud, cybersecurity, internal and criminal investigations, insider transactions, collections, examinations, and enforcement actions, and helps institutions build practices designed to keep those problems out of litigation. His client base centers on financial institutions, alongside privately held businesses and municipal utilities, and he chairs the Cybersecurity, Data Breach, & Privacy practice group at Dickinson Bradshaw. His courtroom work spans Iowa district court, federal court, and appeals before the Iowa Court of Appeals, the Iowa Supreme Court, and the Eighth Circuit, with regulatory appearances before the Iowa Division of Banking, the FDIC, and the Federal Reserve in Iowa and Washington, D.C.

Education & Credentials

John earned his J.D. from the University of Iowa College of Law with distinction, receiving the Willard L. Boyd Public Service Distinction, after completing a B.A. cum laude at Drake University. He is admitted to practice in Iowa and before the U.S. Supreme Court, the U.S. Court of Appeals for the Eighth Circuit, and the federal district and bankruptcy courts for both the Northern and Southern Districts of Iowa.

Recognition & Leadership

Chambers USA has ranked John as a Leading Individual in Litigation: General Commercial Law in Iowa in every edition from 2019 through 2026, after naming him an Up and Coming leader in 2018; its editors note his regular representation of financial institution clients within a broad commercial litigation practice. The Best Lawyers in America has recognized him in Banking and Finance Law (2023–2026 editions), Commercial Litigation and Privacy and Data Security Law (2020–2026 editions), and Construction Law and Litigation - Construction (2026 edition). Earlier honors include the Iowa Defense Counsel Association’s 2014 Rising Star Award and recognition as a Future Leader of the Bar by the Iowa State Bar Association in 2011.

Professional Involvement

John’s speaking and writing calendar runs heavily to payments fraud and bank liability. He presented “Industrial Fraud System in Asia and U.S. Wire Fraud” at the 2025 Dickinson Bradshaw Banking Law Seminar, taught “Liability for Unauthorized Wire Transfers under the Uniform Commercial Code” as a 2023 Lexology Virtual Masterclass, and covered “Real Time Payments Origination Liability” and “Check Fraud” at the 2024 seminar. His recent writing for the firm’s Iowa Banking Law and Iowa Cybersecurity Law Blogs includes “Wire Fraud in the Age of AI” (2026), “Banks May Be Liable for Fraudulent Consumer Wire Transfers” (2025), and “After a Wire Transfer, That’s Not Your Money Anymore” (2022). He is a member of the Iowa Defense Counsel Association, the American Bar Association’s Tort Trial and Insurance Practice Section, the Iowa State Bar Association, and the Polk County Bar Association.

Experience

John’s practice has tracked bank fraud liability for more than a decade, from corporate account takeover programs such as “Understanding Liability: Strategies for Avoiding Loss from Corporate Account Takeover” (2014), through wire transfer agreement counseling dating to “Make Sure Your Wire Transfer Agreements Are Wired Properly” (2013), to depositor-liability analysis in “Banks and Depositors Agree to Disagree: Who is Responsible for Unauthorized Wire Transfers?” (2018). His reported matters include In re AgriProcessors, Inc., 859 F.3d 599 (8th Cir. 2017), in which he represented a financial institution on the treatment of loan overdrafts, and First Security Bank & Trust Co. v. Vegt, 511 B.R. 567 (N.D. Iowa 2014), a bank-side federal appeal over a priming lien in a Chapter 12 bankruptcy. He also litigates business torts, contract disputes, agency regulatory actions, and property tax matters across Iowa state and federal courts.
Daniel J. Healy

Daniel J. Healy

Brown Rudnick LLP.

Daniel Healy is a partner in Brown Rudnick’s Litigation & Arbitration Practice Group, based in the firm’s Washington, D.C. office, where he joined the Commercial Litigation practice in January 2023. A seasoned trial attorney with more than 20 years of extensive courtroom experience in courts across the country, Dan represents policyholders seeking insurance coverage. He has successfully obtained coverage under numerous policy types, working with clients from a variety of industries, including technology companies, financial consultants, manufacturers, railroads, banks, financial service providers, retailers, medical service providers, and food and beverage providers. He is the author of Cyber Insurance Claims, Case Law, and Risk Management, a leading treatise on cyber insurance. In addition, Dan regularly represents clients in disputes involving intellectual property rights and in proceedings before the U.S. Patent and Trademark Office, and he has negotiated copyright and trademark resolutions, including licensing agreements, involving state, federal and international intellectual property rights. He also counsels companies that operate with blockchain technology on potential risks.

Education & Credentials

Healy received a B.A. from Siena College and a J.D. from Fordham University School of Law. He has been licensed in Washington, D.C. since 2002.

Recognition & Leadership

Dan has been selected by his peers for inclusion in The Best Lawyers in America for Insurance Litigation since 2018, and in 2023 he was named by The Best Lawyers in America as Lawyer of the Year for Insurance Litigation. He sits on Law360's editorial board for Insurance Authority Specialty Lines, is a member of the American College of Coverage Counsel, and is listed as a Super Lawyer as well as in Who's Who in America. He was selected for inclusion in the American College of Coverage Counsel in 2019 and remains a member. He has been recognized by Super Lawyers for Insurance Coverage in 2018 and from 2020 through 2025.

Professional Involvement

Earlier in his career, Dan served as a Trial Attorney for the U.S. Department of Justice, Tax Division, where he received an Outstanding Attorney or Special Commendation award each year he was there and served as the E-Discovery Coordinator for the Tax Division. He previously was a partner at Anderson Kill, where he began his legal career, and he returned there as a partner after his government service, serving as deputy co-chair of its Cyber Insurance Recovery practice. At his prior firm he also was a member of the Blockchain & Virtual Currency group and the Financial Services Industry team. He has appeared before the Trademark Trial and Appeal Board and has litigated claims of unfair competition, copyright infringement and patent infringement, and has represented trademark owners in disputes involving domain names, cybersquatting, online infringement and reverse confusion.

Experience

Dan represented Phaedra Partners, a software development company, in a lawsuit against The Travelers Property Casualty seeking insurance coverage for business income and business interruption losses arising out of property damage, which settled just after Phaedra filed its summary judgment motion. Among his notable matters prior to joining Brown Rudnick, he represented Amtrak in defense of a declaratory judgment action filed by London Market insurers that had denied coverage for employee injury claims and environmental liabilities, winning an eight-figure jury verdict from the trial of an initial test environmental site, with settlements following. He represented a national medical provider seeking Representations and Warranty coverage for breach of representations and warranties in a sale agreement, achieving resolution without litigation or arbitration. In McCauley v. First Unum Life Insurance, he drafted the appellate briefs that resulted in a landmark Second Circuit decision on disability coverage that completely reversed the trial court and remanded for a damages determination, and he appeared as amicus curiae before the Maryland Court of Appeals in a challenge to a state law requiring insurers to demonstrate prejudice when denying coverage. He also represented a streaming music company in an insurance coverage dispute over Representations & Warranties coverage for significant breaches by sellers hidden in accounting errors, resolving the quantum of loss at a multi-day mediation.

Credits by state

AK2.0
AL2.0
AR2.0
AZ2.0
CA2.0
CO2.0
CT2.0
DC
DE2.0
FL2.5
GA2.0
HI2.0
IA2.0
ID2.0
IL2.0
IN2.0
KS2.0
KY2.0
LA2.0
MA2.0
MD2.0
ME2.0
MI2.0
MN2.0
MO2.4
MS2.0
MT2.0
NC2.0
ND2.0
NE2.0
NH120.0
NJ2.0
NM2.0
NV2.0
NY2.0
OH2.0
OK2.5
OR2.0
PA2.0
RI2.5
SC2.0
SD2.0
TN2.0
TX2.0
UT2.0
VA2.0
VT2.0
WA2.0
WI2.0
WV2.4
WY2.0

1000+

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Trusted by Legal Professionals

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Live stream programs

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Access to live webinars & recordings

70,000+

Trusted by Legal Professionals

1000+

Live stream programs

24/7

Access to live webinars & recordings

10,000+

Trusted by Legal Professionals

1000+

Live stream programs

24/7

Access to live webinars & recordings

70,000+

Trusted by Legal Professionals

MCLE Credits

Alabama
Approved
Alaska
Approved
Arizona
Approved
Arkansas
Approved
California
Approved
Colorado
Approved
Connecticut
Approved
Delaware
Pending
District of Columbia
No Required
Florida
Approved
Georgia
Approved
Hawaii
Approved
Idaho
Pending
Illinois
Approved
Indiana
Approved
Iowa
Approved
Kansas
Pending
Kentucky
Pending
Louisiana
Pending
Maine
Pending
Maryland
No Required
Massachusetts
No Required
Michigan
No Required
Minnesota
Pending
Mississippi
Pending
Missouri
Approved
Montana
Pending
Nebraska
Pending
Nevada
Approved
New Hampshire
Approved
New Jersey
Approved
New Mexico
Approved
New York
Approved
North Carolina
Pending
North Dakota
Approved
Ohio
Approved
Oklahoma
Pending
Oregon
Pending
Pennsylvania
Approved
Rhode Island
Pending
South Carolina
Pending
South Dakota
No Required
Tennessee
Approved
Texas
Approved
Utah
Pending
Vermont
Approved
Virginia
Not Eligible
Washington
Approved
West Virginia
Pending
Wisconsin
Approved
Wyoming
Pending

Alabama

Requirements

The Alabama State Bar MCLE Commission requires attorneys to complete 12 credits, including 1 ethics, by December 31 of each year. All credits must be reported by February 15 of the following year. A maximum of 12 credits, including 1 ethics credit, may be carried over for 1 year only.  

Formats

  • Attorneys can earn unlimited “live” credit through live seminars, live webcasts, and co-sponsored locations with MyLAWCLE-Alabama approved programs
  • Attorneys are limited to 6 credits per compliance period of “online” programs through MyLAwCLE On-Demand programs