Construction firm sues after $588,000 online theft

Jeremy Kirk reports:

A construction company in Maine is suing its bank after about $588,000 disappeared from its accounts, alleging the bank failed to spot suspicious account activity before it was too late.

Over a week-long period in May, fraudsters made six transfers from the online bank accounts of Patco Construction Company, a family-owned developer in Sanford, Maine, according a copy of the lawsuit on the Washington Post’s Web site.


Patco argues that Ocean Bank did not offer two-factor authentication, which often involves the use of a token that displays a one-time password or a verification telephone call.

Patco also said the transfers were initiated from IP (Internet Protocol) addresses that had never been used by Patco, the transfers far exceeded what the company normally performed and were on days other than Friday, when the company paid its employees by direct deposit.

“None of these transactions triggered any suspicious activity alerts on the part of Ocean Bank,” the lawsuit alleges.

Read more in The Standard.

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