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Horseheads board adopts Electronic Funds Transfer policy to tighten town payment controls
Summary
The Town Board adopted an EFT/ACH policy requiring dual authorization, mandatory phone verification for new banking instructions, vishing protections and recordkeeping; the policy takes immediate effect.
The Town of Horseheads on June 10 adopted a formal Electronic Funds Transfer (EFT) Policy and Procedures designed to strengthen controls over electronic payments and reduce fraud risk.
By unanimous vote on Resolution #113 (motion by Joseph C. Brennan, seconded by Gary H. Riopko), the Town adopted a policy—sourced from NYMIR guidance—that covers ACH, wire transfers, direct deposits and other electronic mechanisms. The policy requires dual authorization for EFTs (an initiator and a separate approver), access-audit logs, mandatory phone call-back verification before entering new or changed banking instructions, and expanded documentation and retention rules.
The policy also spells out protocols to counter "vishing" (voice phishing), instructing staff to hang up and place an outbound call using verified contact information, and to escalate suspected fraud immediately to the Town Supervisor and the banking institution. Violations of the policy may trigger investigations and disciplinary action up to termination.
Town officials said the change responds to a trend toward electronic payments and a directive from the Town’s healthcare provider that payments must be sent electronically beginning June 1, 2026. The resolution states the policy supersedes prior ACH/EFT practices and has immediate effect.
