Tag: Patco

There is no winner in the case of bank vs.…

Several weeks of harsh headlines explaining the tough battle of customers versus bank lawsuits and cybercrime.
In early June, a court in Maine ruled in favor of Ocean Bank in an ACH fraud lawsuit, stating that, “having verified IDs, passwords and requested challenge response questions, it acted in good faith by processing the ACH payments and Patco (the customer) was to blame for letting its details become compromised.” Recently, however, it appears that the opposite has occurred, when a ruling from a Texan judge favored the business which had been the victim of fraud.

Bank lawsuits expose legal confusion over cybercrime

In two consecutive weeks we saw headlines made by customer versus bank lawsuits relating to cybercrime. One judge ruled that questions and answers were good enough to protect the customer. Then, a separate judge rules that the bank should have detected a mere 100 wire transfers from an account after IDs, passwords, and its OTP token password were compromised. Who was right?