Court Rejects Bank Suit vs. Hacked Customer (BankInfoSecurity)

Decision involving fraudulent wire transfer could establish a precedent.

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 the full story.

For earlier coverage of this topic, see Diverging Decisions on Banks’ Responsibility for Cybercrimes and Online Banking Fraud to Surge.

 

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