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... supports Professor William Snyder's sections of National Security Law, Counterterrorism Law, and Prosecuting Terrorists at the Syracuse University College of Law.

Bank to Pay $300K+ to Patco After Security Breach

Dec 28th, 2012 Current Affairs

People’s United Bank in Maine will pay $345,000 to Patco Construction Company to cover losses incurred after an online security breach, according to Wired. This decision follows a court determination deeming the bank’s security practices “commercially unreasonable” under the Uniform Commercial Code (UCC).

The article further reports that the hackers installed malware on Patco’s computer system and stole the company’s banking credentials in order to siphon money from the account held at People’s United.

A Patco representative commented on the incident and settlement as follows:

This case says to banks and to commercial customers . . . that there are circumstances in which the bank cannot shift the risk of loss back to the customer, and we’re not going to assume that security procedures are commercially reasonable just because the bank has a system that they say is state of the art.

You can read the full article, including commentary on the arguments made by both sides in court, here.

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