From: InfoSec News (alertsinfosecnews.org)
Date: Tue Sep 08 2009 - 02:19:14 CDT

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http://www.wired.com/threatlevel/2009/09/citizens-financial-sued/

By Kim Zetter
Threat Level
Wired.com
September 4, 2009

An Illinois district court has allowed a couple to sue their bank on the
novel grounds that it may have failed to sufficiently secure their
account, after an unidentified hacker obtained a $26,500 loan on the
account using the customers’ user name and password.

As initially reported by legal blogger, David Johnson, Marsha and
Michael Shames-Yeakel sued Citizens Financial Bank in 2007 in the
northern district of Illinois on several grounds, including a claim that
the bank failed to provide state-of-the-art security measures to protect
their account.

U.S. District Judge Rebecca Pallmeyer refused last week to grant a
summary judgment in favor of Citizens Financial, stating in her ruling
(.pdf) that "assming that Citizens employed inadequate security
measures, a reasonable finder of fact could conclude that the
insufficient security caused Plaintiffs'conomic loss."

Larry Smith, an attorney for the Shames-Yeakels, told Threat Level that
he's surprised and happy by the judge's ruling, particularly since the
negligence claim was not the meat of their case against the bank.

[...]

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