Bank Settles With Calif. Cyberheist Victim
Summary: Village View Escrow, a Redondo Beach, California escrow firm, settled with its bank Professional Business Bank after suing over a March 2010 cyberheist in which 26 consecutive wire transfers sent $465,000 to 20 individuals with no prior business relationship to the firm. The firm recovered $72,000, leaving a $393,000 loss its owner covered with a personal loan at 12 percent interest, and the settlement covered the loss plus attorneys' fees.
What you should know: The Uniform Commercial Code limits wire-transfer fraud damages to the amount lost plus interest, so a small business must fund litigation to recover a capped sum while the bank denies liability; the bank in the related Patco case reportedly spent nearly twice the loss just to avoid setting a precedent.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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