Feeds

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

Victim failed to secure account credentials

Remote control for virtualized desktops

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. ®

Intelligent flash storage arrays

More from The Register

next story
Webcam hacker pervs in MASS HOME INVASION
You thought you were all alone? Nope – change your password, says ICO
You really need to do some tech support for Aunty Agnes
Free anti-virus software, expires, stops updating and p0wns the world
Meet OneRNG: a fully-open entropy generator for a paranoid age
Kiwis to seek random investors for crowd-funded randomiser
USB coding anarchy: Consider all sticks licked
Thumb drive design ruled by almighty buck
Attack reveals 81 percent of Tor users but admins call for calm
Cisco Netflow a handy tool for cheapskate attackers
Privacy bods offer GOV SPY VICTIMS a FREE SPYWARE SNIFFER
Looks for gov malware that evades most antivirus
Patch NOW! Microsoft slings emergency bug fix at Windows admins
Vulnerability promotes lusers to domain overlords ... oops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.