Security Failures: Who Pays The Tab?

Patco Construction company sued People’s United Bank (formerly Ocean Bank) when cyber thieves stoled almost $590,000 from their business bank account. A recent court ruling is good news for small businesses that have their bank accounts drained by hackers. This Credit Union Times article describes the ruling:

The bank could have done more, ruled the appellate court, and it is therefore on the hook for the nearly $590,000 that was looted from Patco over seven days in 2009.

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It should be noted that business accounts lack the legal protections that consumer accounts have. This is why Clark Howard provided these recommendations about how small businesses should protect their bank accounts.