A legal dispute involving a 2009 online heist from the bank account of Maine construction firm Patco has been resolved, according to BankInfoSecurity. Mark Patterson of Patco told BankInfoSecurity that Patco’s bank, People’s United, agreed to pay Patco for the losses it suffered when its bank account was hit with fraudulent wire transfers.
In July, the First Circuit Court of Appeals in Boston reversed a lower court ruling in favor of the bank and advised the two parties to negotiate an out-of-court settlement. Patco originally had asked for damages and legal fees in addition to compensation for its losses.
The appellate court said security procedures at People’s, formerly Ocean Bank, were “commercially unreasonable,” BankInfoSecurity says. But it also notes that the court ruling suggested commercial customers of banks might have some responsibilities for security as well.
See the full story here. For previous coverage, see Diverging Decisions on Banks’ Responsibility for Cybercrime and Hackers Target Company Bank Accounts.