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Cyber Risks · Krebs on Security

Judge Nixes Patco’s eBanking Fraud Case

Summary: A federal judge in Maine affirmed a magistrate's recommendation that Patco Construction lose its lawsuit against Ocean Bank over a $588,000 cyber heist, ruling that a bank protecting accounts with little more than passwords and secret questions complies with federal online banking security guidelines. Patco sued in 2009 to recover its losses, and its attorney Dan Mitchell said the company has 30 days to appeal but has not decided whether to do so.

Key Takeaway: The ruling lands as other commercial account takeover victims press banks in different districts - a Michigan court held Comerica liable for more than half a million dollars in a 2009 heist, and a California escrow company that lost over $465,000 sued its former bank - but none of these trial-level decisions is case law, and a uniform national standard would require the U.S. Supreme Court, which banks may avoid for fear the standard cuts against them.

Read the original at Krebs on Security ↗

Topics
Data Breaches
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