SALON

Friday, Nov 30, 2012 8:47 PM UTC

Bank reimburses hacking victim $300K

The case may set a precedent regarding banks' liability in instances of fraud carried out by hackers

By

Topics: Hacking, Fraud, Security, People's United Bank, Maine, Malware,

Bank reimburses hacking victim $300K (Credit: Shutterstock/ scyther5)

In a case that may set a precedent for liability in hacking fraud incidents, a bank in Maine has agreed to reimburse a construction company $345,000 that was lost to hackers. A court ruled that the bank’s security practices were “commercially unreasonable,” reported Wired Friday.

In 2009, hackers installed malware on construction firm Patco’s computers and stole its banking credentials to steal around $300,000. People’s United Bank has agreed to pay Patco Construction Co. all the money it lost plus interest. Although a U.S. District Court ruled that People’s United wasn’t responsible for the lost money as Patco claimed, the First Circuit Court of Appeals found the bank was responsible for an increased fraud risk and advised on the settlement.

“The case raised important questions about how much security banks and other financial institutions should be reasonably required to provide commercial customers,” noted Wired. Jeremy Kirk at ComputerWorld.com wrote that the case is “a sign that small businesses are having greater success at shifting liability toward banks in online security meltdowns, including out-of-court settlements.”

Natasha Lennard

Natasha Lennard is an assistant news editor at Salon, covering non-electoral politics, general news and rabble-rousing. Follow her on Twitter @natashalennard, email nlennard@salon.com. More Natasha Lennard.

Next Article

You Might Also Like

More Related Stories

Featured Slide Shows

Gripping photos: The people of the Turkey protests (slideshow)

close X
  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11
  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

  • Recent Slide Shows

  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11

Related Videos

More Related Stories

Comments

 6 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>

follow salon

Most Read

Popular on Reddit

links from salon.com

From Around the Web

Presented by Scribol
listener_new_rect The Listener: "We Are All Completely Beside Ourselves": Growing up primate

Recommendations