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Cyber Risks · Krebs on Security

Experi-Metal vs. Comerica Case Heads to Trial

Summary: A lawsuit over the 2009 theft of more than $560,000 from Michigan metals shop Experi-Metal Inc. is headed to trial, after an EMI employee entered a one-time passcode on a phishing site that mimicked Comerica's online banking login and attackers initiated 47 wire transfers to China, Estonia, Finland, Russia and Scotland between 7:30 a.m. and 10:50 a.m. on Jan. 22, 2009. Both parties agree on those events, but Comerica argues EMI cannot prove the bank caused its damages and blames the employee for failing to safeguard security information, while EMI says it asked the bank to halt wires and thieves initiated another 38 transfers over the next three hours.

What you should know: Businesses do not get the legal protections consumers have, and the case turns on whether Comerica acted in good faith once it knew of the fraud - a question of where the bank's responsibility ends and the customer's begins, with more than $70 million already lost to similar attacks.

Read the original at Krebs on Security ↗

Topics
Data Breaches
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