Tag Archives: Fraud
Another Blow to Banks in ACH Fraud Cases: Funds Transfers Act Preempts Indemnity Agreements — Choice Escrow v. BancorpSouth
By Jake McGowan Choice Escrow and Land Title, LLC v. BancorpSouth Bank, 10-03531 (W.D. Miss. Aug. 20, 2012) Last month, we blogged about Patco v. Ocean Bank, where the First Circuit held that the bank may bear the loss of fraudulent ACH transfers because its security procedures were not “commercially reasonable” under the Funds Transfers […]
Bank Might Bear Loss for Fraudulent Money Transfers Initiated From Its Website–Patco v Ocean Bank
By Jake McGowan (with input from Venkat Balasubramani) Patco v. Ocean Bank, 11-2031 (1st Cir. July 3, 2012) When a scammer siphons money from a customer’s online bank account, should the bank or the customer bear the loss? Last year, we blogged about a pair of cases that considered this question and came to differing […]
Jake McGowan 