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Cyber Risks · Krebs on Security

Bill Would Give Cities, Towns and Schools Same e-Banking Security Guarantees as Consumers

Summary: Sen. Charles Schumer introduced S. 3898 to extend Regulation E protections under the Electronic Funds Transfer Act to municipalities and school districts, which currently absorb losses from commercial banking fraud that consumers are not liable for. The FBI says organized thieves have stolen more than $70 million from small to mid-sized businesses, nonprofits, towns and cities, including $600,000 from Brigantine, N.J., $100,000 from Egg Harbor Township, and $3.8 million from the Duanesburg Central School District, which is still missing roughly $500,000.

Key Takeaway: The bill leaves the definition of "municipality" and "school district" to the Federal Reserve Board of Governors, and the Independent Community Bankers of America's Steve Verdier argues that forcing banks to cover these losses weakens their ability to serve consumers and pushes the risk into pricing across all services.

Read the original at Krebs on Security ↗

Topics
Identity & Access Management
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