The United States Court of Appeals has confirmed BancorpSouth's lack of liability in an online banking fraud case, and even granted that the bank may seek to recover attorneys' fees from the victim.
The Court of Appeals for the Eighth Circuit affirmed a district court ruling that determined BancorpSouth Bank (BXS) is not liable for $440,000 Internet fraudsters stole from the bank account of one of its commercial customers, Choice Escrow and Land Title. A Choice employee had fallen prey to a phishing scam and allowed malware onto a company computer that allowed the fraudster to obtain the employee's user name and password as well as the computer's IP address and other characteristics. The cybercriminal then issued a payment order instructing the bank to transfer $440,000 from Choice's account to a bank in the Republic of Cypress, which the bank executed.
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