Another US bank sued by hacked customer

Another US bank sued by hacked customer

California-based Village View Escrow has become the latest US business to sue its bank after having its account drained by cyber-thieves.

In a case picked up by the BankInfoSecurity site, the company filed a complaint with the California Superior Court, Los Angeles last month against Professional Business Bank.

It stems from an attack on Village View Escrow's online account in March 2010 that saw $465,000 stolen in a series of wire transfers over two days.

The plaintiff says Professional Business Bank procedures failed to live up to Federal Financial Institutions Examination Council (FFIEC) and Federal Deposit Insurance Corp (FDIC) standards.

It is seeking reimbursement for the $465,000 lost, damages for losses related to loan penalties and interest and money back it paid the bank between 2008 and 2010 in service fees.

Last month a Michigan court found in favour of Experi-Metal in its $560,000 cyber-heist suit against Comerica Bank, concluding that the provider should have done a better job of picking up the fraudulent transactions.

This contrasted with an earlier decision in Maine, where the presiding magistrate ruled that Ocean Bank was not responsible for the loss of around $345,000 from a business customer account following a similar cyber-attack.

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