Dorsht Explores Evolving Payment Fraud Liability in Law360

08.07.2026

Stinson LLP attorney Nadine Dorsht authored a Law360 article examining how recent court decisions are reshaping payment fraud disputes and why businesses and financial institutions should take a closer look at treasury and deposit agreements, payment verification procedures and internal fraud controls.

Dorsht explains that recent decisions reflect a growing judicial focus on which party was best positioned to recognize and prevent fraudulent payment instructions, rather than looking solely at whether a bank followed commercially reasonable security procedures. As business email compromise schemes continue to evolve, she notes that this shift has broader implications for businesses, financial institutions and the attorneys who advise them.

"With courts asking who was best positioned to prevent the loss, compliance becomes everyone's responsibility," Dorsht writes. "It must live in the contract language, in employee trainings and the insurance program that backstops both."

Dorsht emphasizes the importance of carefully drafted agreements and clearly defined security procedures in helping organizations reduce fraud risk before a dispute arises. She discusses practical measures such as multi-step payment verification protocols, detailed treasury and deposit agreement provisions, and coordinated contract and insurance reviews to help organizations better prepare for evolving fraud risks.

Dorsht advises financial institutions on a broad range of litigation and regulatory matters involving bank operations, consumer finance and payment systems. She also counsels banks, lenders and affiliated third-party service providers on cybersecurity, privacy and data security considerations.

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