Fraud Cases: Black Eye for Banking?
July 26, 2010
Total Loss:
$1.5 Million
In a Michigan courtroom, Comerica Bank and its business customer, Experi-Metal Inc., exchange testy legal motions over which party is more responsible for the circumstances that exposed Experi-Metal to fraudulent transactions of over $550,000. Meanwhile, in Sanford, Maine, Patco, a construction company, has sued Ocean Bank of Portsmouth, NH, alleging that the institution failed to prevent fraudulent ACH transactions totaling more than $500,000.
And in Redondo Beach, Calif., the owner of Village View Escrow Inc. is preparing to file suit against Professional Business Bank, Pasadena, CA, after losing $465,000 in fraudulent account takeovers.
In the court of public opinion, banking has suffered a black eye, industry experts say. And the solution requires a return to basics - of banking and protection.
Source:
Bank Info Security; By Linda McGlasson
Posted in:
Account Takeover Identity Theft