Ruling Raises Stakes for Cyberheist Victims
Summary: A Missouri escrow firm that sued its bank to recover $440,000 stolen in a 2010 cyberheist lost again, and the 8th Circuit Court of Appeals ruled the bank can pursue its legal fees from the customer. Hackers used the firm's stolen online banking ID and password to send a single unauthorized wire transfer to a corporate account in Cyprus, and the firm had declined BancorpSouth's dual-control option, which required separate credentials to approve and release a transfer.
What's compelling: The ruling makes indemnification the law of the land in the 8th Circuit, so a cyberheist victim who sues and loses may owe the bank's legal fees on top of the stolen $440,000 - a cost that legal experts say will chill litigation and that banks without such clauses are now expected to add.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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