Day: June 20, 2011

Who bears the risk of loss when a corporate bank account is hacked?Who bears the risk of loss when a corporate bank account is hacked?



Recently, we have witnessed numerous examples of corporate web sites being hacked. Sony, Sega, Honda, Citibank, and Epsilon are all recent examples. When these sites are hacked often the victims are individual customers whose personal information is accessed. But, when a bank account is hacked often the object is money. When such an account is hacked such as by an unauthorized wire transfer or withdrawal, who bears the risk of loss, the bank or the customer whose account is raided?

Eric Goldman’s blog has a post that summarizes two recent US cases which deal this issue under US law.

Computer and Internet Law Updates for 2011-06-20Computer and Internet Law Updates for 2011-06-20