Comment: I hope the bank has good cyber insurance they will need it if they lose
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By Jaikumar VijayanAugust 13, 2014 03:16 PM ET Computerworld - A lawsuit filed in Tennessee earlier this month has resurfaced questions about a bank's responsibility in protecting customers against cyberheists.
TEC Industrial Maintenance & Construction (formerly Tennessee Electric Company) is seeking to recover about $193,000 that was stolen from its bank account by a gang of Russian cyberthieves in May 2012.
In a lawsuit, the company blamed its financial institution, Trisummit Bank, for the loss and claimed the theft happened only because the bank failed to follow agreed upon security practices. The lawsuit accuses TriSummit of negligence, breach of contract and fraud.
ComputerWorld/ Full article here/ http://www.computerworld.com/s/article/9250360/Tennessee_firm_blames_bank_for_193K_cybertheft
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Thanks for posting this article, Antus.
Brian Krebs also covered this story in quite a bit of detail on his KrebsonSecurity Blog. Here's a small snippet of his 'analysis' section:
"This lawsuit, if it heads to trial, could help set a more certain and even standard for figuring out who’s at fault when businesses are hit by cyberheists (for better or worse, most such legal challenges are overwhelmingly weighted toward banks and quietly settled for a fraction of the loss)."
You can read his full coverage here.
*Also, one bit of clarification. The ComputerWorld article's title says '$193K cybertheft' while the Krebs piece's title says '$327K Cyberheist'. The heist itself was about $327K, but TriSummit Bank (the one getting sued) was able to get ~ $135K back. Still, that leaves Tennessee Electric Company Inc. out ~ $193K; thus the lawsuit...*
(Source: KrebsonSecurity)
Brian Krebs also covered this story in quite a bit of detail on his KrebsonSecurity Blog. Here's a small snippet of his 'analysis' section:
"This lawsuit, if it heads to trial, could help set a more certain and even standard for figuring out who’s at fault when businesses are hit by cyberheists (for better or worse, most such legal challenges are overwhelmingly weighted toward banks and quietly settled for a fraction of the loss)."
You can read his full coverage here.
*Also, one bit of clarification. The ComputerWorld article's title says '$193K cybertheft' while the Krebs piece's title says '$327K Cyberheist'. The heist itself was about $327K, but TriSummit Bank (the one getting sued) was able to get ~ $135K back. Still, that leaves Tennessee Electric Company Inc. out ~ $193K; thus the lawsuit...*
(Source: KrebsonSecurity)
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