Pennsylvania Federal Court Protects Bank From Liability To Business Customer Whose Deposit Account Is Hacked

LexisNexis (February 15, 2019, 10:19 AM EST) -- If a business account is hacked to the tune of $580,000 by a fraudster, can the customer shift the loss to the bank as initiator of the bogus wire transfer? That was the key issue in a recent decision from Pennsylvania. The court rebuffed a variety of claims filed by the unhappy customer, including violation of the bank’s deposit agreement, violations of Article 4A of the Pennsylvania UCC, and common-law negligence. The bank escaped any liability on a motion to dismiss....