In 2009, Patco Construction Co. lost hundreds of thousands of dollars when its People’s United Bank account was hacked. The precedent-setting case has finally been resolved, with the Maine-based bank agreeing to reimburse Patco for $345,000.
At the crux of the court’s decision was the ruling that the bank’s security system was “commercially unreasonable,” putting the onus on banks to protect customers from fraud, reports Wired. People’s United Bank had failed to alert Patco of the unusual charges until almost $600,000 was siphoned out of the account within a week.
Check out the whole story on Wired.