Jul 15 2011

Court Ruling on “Due Diligence” Online Banking Security

Category: Security and privacy LawDISC @ 2:25 pm

The ruling in the Patco Construction vs. People’s United Bank case set precedence, because the judge basically ruled that the bank’s below par security was sufficient for small business — and Patco (small business) was held liable for paying for the fraud that was a result of an average bank security. To know more details of the case, Brian Krebs has written a great post on this case.

http://krebsonsecurity.com/2011/06/court-passwords-secret-questions-reasonable-ebanking-security/

Brian Krebs also wrote about another high profile case (emi v comerica) which was decided in the favor of small business (EMI)
http://krebsonsecurity.com/2011/06/court-favors-small-business-in-ebanking-fraud-case/

Baed on these two cases it is hard to know how the next online banking fraud case will be decided and on which precedence. I guess the courts are still trying to figure out how to decide these complex cases and where to set the due diligence bar for the banks.

4 Responses to “Court Ruling on “Due Diligence” Online Banking Security”

  1. Scam Alert, TFCU Online Banking | Free Online Banking says:

    […] banking|bank of america online banking|first merit online banking Mouse here for Related LinksCourt Ruling on “Due Diligence” Online Banking Security Tags: bank fraud, online banking, structured settlements, tcf online banking, TFCU, TFCU […]

  2. Is Harris Online Banking Work for You? | Free Online Banking says:

    […] Mouse here for Related LinksCourt Ruling on “Due Diligence” Online Banking Security Tags: amount of time, bank, banking, harris online banking, investing money, is harris online […]

  3. Regions Online Banking – Advantages You May have Never Thought Of | Free Online Banking says:

    […] 'none'; document.getElementById('singlemouse').style.display = ''; } Which? Tips for Online BankingCourt Ruling on “Due Diligence” Online Banking Security var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-4777338-48']); _gaq.push(['_trackPageview']); […]

  4. TD Online Banking – Know The Terms, Before You Sign Up | Free Online Banking says:

    […] your TD online Banking . Mouse here for Related LinksCourt Ruling on “Due Diligence” Online Banking Security Tags: bank fraud, harris online banking, mortgage calculator, online banking, online […]

Leave a Reply

You must be logged in to post a comment. Login now.