Defining Reasonable Security
Tracy Kitten writes:
Last month, an appellate court in Boston reversed a lower court’s ruling that favored a bank in a legal dispute over a 2009 account takeover incident (see PATCO ACH Fraud Ruling Reversed.)
Was that appellate ruling fair? Based on the security practices that most banking institutions used in 2009, probably not. The case exemplifies the challenges courts – and the attorneys arguing both sides – face in resolving cases involving ACH and wire fraud. The key issue? How to define “reasonable” security – and how that definition changes over time.
Read more on BankInfoSecurity.