From American Banker:
A federal appeals court late last week allowed a lawsuit by Patco Construction, a Maine-based firm, against Ocean Bank (since acquired by People's United Bank), to proceed, though it suggested the two parties settle out of court. The new ruling reversed a lower district court in Maine that found that the bank wasn't responsible for losses tied to a fraud attack that looted the construction firm's bank account.
What should be of interest to all banks is it appears Ocean's technology was sound, or at least in line with federal security guidelines. That means banks have to do more than deploy multi-factor authentication and other top-shelf security technology - in other words, deploy more human security staff -- to protect themselves from crooks and the courts, at a cost that may be prohibitive for smaller banks.
Same old modern day moral: technology is terrific but the humans in charge need to be paying attention.