Feeds

Judge rules against firm that lost $345k to bank trojan

Victim failed to secure account credentials

High performance access to file storage

A federal magistrate judge has ruled against a small business that lost $345,000 in an online bank heist, arguing that the theft largely resulted from its own failure to secure its account credentials, according to published news reports.

Patco Construction Company sued Ocean Bank in 2009 after crooks used malware to siphon about $589,000 out of the company's account. Bank employees managed to recover about $243,000 of the pilfered funds, but held the small business responsible for the remainder. Patco asked a federal judge in Maine to hold the bank accountable for the loss, arguing bank employees should have recognized warning signs that the transactions were fraudulent.

This week's 70-page ruling (PDF) serves as a recommendation and still must be formally adopted by the judge overseeing the case. Still, it could serve as a harbinger of rulings to come. With the wide availability of malware generated from the ZeuS and SpyEye DIY kits, online bank heists have run rampant over the past few years, generating millions of dollars in losses.

Hanging in the balance is whether banks or end users should be on the hook for reimbursing those costs.

More from Bank Info Security, IDG News and KrebsOnSecurity is here, here and here. ®

High performance access to file storage

More from The Register

next story
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Web data BLEEDOUT: Users to feel the pain as Heartbleed bug revealed
Vendors and ISPs have work to do updating firmware - if it's possible to fix this
OpenSSL Heartbleed: Bloody nose for open-source bleeding hearts
Bloke behind the cockup says not enough people are helping crucial crypto project
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
Experian subsidiary faces MEGA-PROBE for 'selling consumer data to fraudster'
US attorneys general roll up sleeves, snap on gloves
NSA denies it knew about and USED Heartbleed encryption flaw for TWO YEARS
Agency forgets it exists to protect communications, not just spy on them
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.