A US judge has backed BancorpSouth in its dispute with a business customer over who was responsible for the loss of around $440,000 stolen from the customer's account.
In March 2010 thieves compromised the username and password for Choice Escrow and Land Title's bank account and wired the money to Cyprus.
The company sued BancorpSouth seeking damages and recovery of losses, claiming the wire transfers should not have been approved. The bank later filed a counter-claim.
Now, according to BankInfoSecurity, a judge has filed a summary judgement in Missouri siding with the bank, citing Choice Escrow's decision to twice decline BancorpSouth's offers for dual or two-person authorisation on wires.
"Choice understandably feels as though it did nothing wrong, but yet is out $440,000. BSB, as well, feels as though it has done nothing wrong. In essence, both parties are correct - yet someone must bear the risk of loss," says judge John Maughmer.