Are The Tides Finally Turning? Banks will need to step up fraud controls
Last week, I blogged about the unfortunate court ruling on an online bank fraud case that sided with Ocean Bank indicating that had deployed commercially reasonable security controls and their customer – Patco Construction – was ultimately responsible for the fraud since they had agreed to the banks security measures when they signed their contract. For more insight on the case and my views on why we need the regulators to step up to the plate, check out ” Caviet Emptor…”
Since then, a number of significant things have happened in the online banking / security space. #1, yet another major breach occurred, this time at CitiBank; #2 there are whispers on the street indicate that the updated FFIEC security guidance for online banking is back on the rails and set to be released immently (sorry, no link for this one yet ) ; #3 Bank Information Security, a leading online media company focussed on financial security launched a new FFIEC resource center to help financial institutions get edcuated and prepared for the upcoming changes to the guidance ; and last but certainly not least, #4 U.S. District Judge Patrick Duggan ruled that Comerica bank must reimburse a Sterling Heights sheet metal company $561,000 it lost in an Internet banking fraud attack (Good for you Justice Duggan).
I don’t know about you, but to me, the tides are turning and its about time!
PS – If you like the picture, you would LOVE Tofino, British Columbia. My wife and I vacationed there last summer and the beauty of forest and ocean is outstanding.