Bank not liable for customer’s $440,000 cybertheft

Jaikumar Vijayan reports:

A Missouri escrow firm that lost $440,000 in a 2010 cyberheist cannot hold its bank responsible, an appeals court ruled this week.

The Court of Appeals for the Eighth Circuit’s decision this month affirmed a lower court ruling in the case.

The appeals court also held that the escrow firm can be held responsible for the bank’s attorney fees in the case.

In a 25-page ruling, the appeals courts agreed with a Missouri district court ruling in March 2013 that blamed Choice Escrow and Title LLC for the loss because it failed to follow the bank’s recommended security precautions.

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