Escrow Co. Sues Bank Over $440K Cyber Theft
Summary: Choice Escrow and Land Title LLC, a Springfield, Mo. title insurer, is suing BancorpSouth over a $440,000 wire transfer thieves made to a Cyprus bank account on St. Patrick's Day after stealing the firm's online banking ID and password. The complaint, filed in Greene County, Mo. circuit court, argues the bank's password-only authentication options fell short of 2005 FFIEC guidance calling single-factor authentication inadequate for high-risk funds transfers.
Key Takeaway: The fraudulent transfer was roughly $90,000 more than Choice Escrow held in its operating account, and the firm had less than 48 hours to replace client money or shut down, converting it to a 10-year loan at $4,300 a month. The FBI says organized thieves have attempted more than $220 million from small to mid-sized organizations and succeeded in taking more than $70 million.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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