BankSouth’s Win: A Study in the Importance of Reasonable Security Procedures
An employee of a business customer of BankSouth apparently fell for a phishing scheme, which allowed the bad guys to learn the user name and password of the employee. The business declined to use bank-offered "dual controls," which would require two separate employees to complete the transfer action, for the sake of convenience. When the business lost $588,000 in a cyberheist, it sued the bank and not only lost, but the court has said the bank can now pursue its legal fees against the customer. [6/23/14]
