Common use of FRAUD PREVENTION AND DETECTION Clause in Contracts

FRAUD PREVENTION AND DETECTION. The member agrees to maintain appropriate security controls and procedures to prevent and detect thefts of Instruments, or losses due to fraud or forgery involving Instruments, or fraudulent or unauthorized Transactions. The member further agrees to diligently supervise and monitor the conduct and work of all agents and employees having any role in the preparation of the member's Instruments or conduct of Transactions, the member's reconciliation of the statement of account for the Account, or other banking functions.