Hospital Sues Bank of America Over Million-Dollar Cyberheist
Summary: A public hospital in Washington state is suing Bank of America to recover losses from a $1.03 million cyberheist in April 2013, when thieves broke into Chelan County Hospital No. 1's payroll accounts, added almost 100 money mules, and pushed three unauthorized ACH payments over April 19 and 20. The hospital alleges a county treasurer's employee told the bank on April 22 that a pending $603,575 transfer was not authorized, yet Bank of America processed it anyway; the bank denies nearly all allegations and cites the Uniform Commercial Code.
What you should know: Bank of America clawed back only about $400,000 of the stolen $1 million, and under state interpretations of the UCC the most a business can hope to recover is the amount stolen - meaning litigation costs can equal or surpass the loss.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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