Online Banking Fraud 2- The Shifting Legal Burden On Banks

Online Banking Fraud 2- The Shifting Legal Burden On Banks

What is “commercially reasonable security?” In recent years, bank liability in the event of a malware attack on a commercial bank account has changed, with banks found not to have implemented commercially reasonable security practices being held liable for malware losses by customers. The court’s opinion is that banks should be anti-fraud experts and should implement controls to mitigate the likelihood of commercial account fraud loss, but are banks expected to provide perfect security against all types of fraud? What will likely become the new compliance standard for reasonable security?

As with all NSS Labs group tests, there was no fee for participation. All testing was conducted independently and was not paid for by any vendor.