The Federal Reserve banned former First Horizon bankers for alleged misconduct, including obtaining customer data and providing it to a third-party impersonator who initiated fraudulent wire transfers. Another former banker allegedly used customer data to run up $25,000 in debit charges.
These regulatory actions underscore the importance of robust internal controls and ethical conduct within financial institutions. The Federal Reserve's intervention aims to maintain public trust and integrity in the banking system.
While the individuals are no longer employed by First Horizon, the incident highlights the potential for reputational risk associated with employee misconduct. Banks are continuously scrutinized for their ability to prevent fraud and protect customer information.
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