A Missouri court rejected BancorpSouth’s attempt to countersue a hacked commercial banking customer, Choice Escrow and Land Title, for losses, damages and legal costs, according to BankInfoSecurity.
In 2010, a fraudulent wire transfer from Choice Escrow’s account at BancorpSouth cost Choice more than $400,000. After Choice sued the bank in 2010 seeking to recover its losses, BancorpSouth filed its countersuit.
According to BankInfoSecurity, the Missouri court’s interpretation of a section of the Uniform Commercial Code could set a precedent for similar cases involving bank cyber frauds.
For earlier coverage of this topic, see Diverging Decisions on Banks’ Responsibility for Cybercrimes and Online Banking Fraud to Surge.