Tenn. Firm Sues Bank Over $327K Cyberheist
Summary: Tennessee Electric Company, a Kingsport, Tenn. industrial maintenance and construction firm, sued TriSummit Bank in state court in August 2014 over a May 2012 corporate account takeover in which thieves used more than four dozen money mules to move $327,804 out of its accounts. The bank recovered roughly $135,000, leaving a $192,656 loss, and the suit alleges negligence, breach of contract, gross negligence and fraudulent concealment, including that the bank approved the $327,804 payment to 55 accounts without the phone verification its agreement required.
Why it matters: Businesses get none of the Regulation E protection consumers have, and under the UCC the most a victim can typically recover is the amount stolen - which is why most of these cases settle quietly for a fraction of the loss rather than reach a courtroom.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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