Federal appeal court raps bank over shoddy online security

A U.S. construction company may stand a greater chance of recovering some of the US$345,000 it lost in fraudulent wire transfers that it blames on poor online banking practices of its bank.

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Fraudsters made six wire transfers using the Automated Clearing House (ACH) transfer system amounting to more than $588,000 in May 2009. About $243,000 was recovered.

The court found that Ocean Bank was not monitoring its transactions for fraud nor notifying customers before a suspicious transaction was allowed to proceed, both capabilities that it did possess with its security system.

Pay me now or pay me later...Are you doing enough to protect your members and your CU? Read the full article to see what could have been done to alter the outcome.