Online Bank Fraud Lawsuits Force Banks To Reassess Security

August 17, 2010 – In The News

Online bank fraud targeting corporate accounts of small and mid-sized businesses has become increasingly problematic for banks, forcing them to reevaluate their online banking security due to an increasing wave of lawsuits. Scott Vernick expects these online bank fraud lawsuits to continue.

Malware like the Zeus Trojan has been used in stealing banking customers’ online credentials, hijacking accounts and initiating fraudulent ACH and wire transactions. Several businesses that have been attacked by online bank fraud have sued their banks to try recover their losses. Banks are realizing that these lawsuits also pose a threat to their reputation.

Vernick notes, “Individual consumers and businesses want to believe their financial institutions are places where they can conduct online business in a secure fashion. If you're a bank, you want to project and cultivate the image that it's safe to conduct business online."

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