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.

Brian Krebs also wrote about another high profile case (emi v comerica) which was decided in the favor of small business (EMI)

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.