25. November 2010 · Comments Off on Escrow Co. Sues Bank Over $440K Cyber Theft — Krebs on Security · Categories: blog · Tags: ,

Escrow Co. Sues Bank Over $440K Cyber Theft — Krebs on Security.

The Choice Escrow and Land Title escrow company had $440,000 stolen from its bank account in one fraudulent online transaction. Choice Escrow is suing the bank – BancorpSouth, Inc of Tupulow, Miss.

The fraudulent transaction was to a corporate account payee in Cyprus.

Technically the bank is not responsible for commercial account losses unless reported within 48 hours of the transaction. However Choice Escrow is suing on the basis that BancorpSouth did not provide the two-factor authentication required by the Federal Financial Institutions Examination Council (FFIEC).

Even if that were true, two-factor authentication is no longer enough to thwart online banking fraud. The problem is if the end user’s computer is compromised with a “man-in-the-browser” trojan like Zeus, once the authentication process is completed, the illicit transactions are performed while the end user is logged on!!

Think of it this way. No number of locks on your front door will stop a bad guy from walking into your house right behind you after you have opened the door.

We have partnered with Becrypt, who provides a “Trusted Client” solution which (1) resides on an encrypted USB stick which you boot from, or (2) resides on a dedicated PC which you use only for banking.