Court allows suit against bank for lax security (updated)
September 2, 2009 by admin
Filed under Breach Incidents, Financial Sector, Of Note, Other, U.S.
Jaikumar Vijayan of Computerworld reports:
A couple whose bank account was breached can sue their bank for its alleged failure to implement the latest security measures designed to prevent such compromises.
In a ruling issued last month, Judge Rebecca Pallmeyer, of the District Court for the Northern District of Illinois, denied a request by Citizens Financial Bank to dismiss a negligence claim brought against it by Marsha and Michael Shames-Yeakel. The Crown Point, Ind. couple — customers of the bank — alleged that Citizens’ failure to implement up-to-date user authentication measures resulted in the theft of more than $26,000 from their home equity line of credit.
Read more on Network World
Updated 9-23-09: Wired provides a copy of the court opinion in a story they wrote two days after this blog entry was posted. Now Bruce Schneier has blogged about the case, and Dark Reading also offers commentary.