Diverging Decisions on Banks’ Responsibility for Cybercrimes

Michigan court says Comerica must pay $561,000 Experi-Metal lost to cyberthieves; Maine court says bank not liable.

Two recent court decisions in cases in which companies suing their banks after their business accounts were looted by online fraudsters underscore the need for banking regulators to expedite new guidance on authenticating online banking transactions.

As the incidence of online fraud increases rapidly, banks’ liability concerns were assuaged on May 27 when a Maine court sided with Ocean Bank, deciding that it was not liable for more than $300,000 in fraudulent transfers out of Sanford, Maine-based Patco Construction Co.’s business account.

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