Missouri Court Rules Against $440,000 Cyberheist Victim
Summary: A Missouri federal court ruled on March 18, 2013 against Springfield-based Choice Escrow and Land Title LLC, which had sued BancorpSouth to recover $440,000 stolen in a 2009 cyberheist after thieves used a stolen online banking ID and password to send a single wire transfer to a corporate account in Cyprus. The judge focused on the fact that Choice Escrow had been offered dual controls - separate user IDs and passwords to approve and release a transfer - and explicitly declined them in writing, and had also declined to set daily limits on wire transfers.
What's compelling: Under UCC Article 4a, a bank can argue its security procedures were commercially reasonable when a customer turns down a control the bank offered, so the decision to decline dual controls left Choice Escrow carrying the loss on a $440,000 transfer that was not unusual for a firm routinely moving large sums.
Read the original at Krebs on Security ↗
- Topics
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