Court Recognizes "Commercial Reasonableness" In
Finding For Bank In Data Security Breach Case
People's United Bank, the nation's largest regional bank
headquartered in New England, won a key victory in a data security
breach case that had been followed for two years by the national
banking associations, as well as by American Banker and
other industry publications.
Patco Construction Company Inc., a commercial customer of the
bank, brought suit alleging that the bank was responsible when
third-party cybercriminals allegedly breached Patco's computer
system, stealing passwords and challenge question answers allegedly
through the use of keylogging malware, and executed a series of
fraudulent withdrawals from Patco's checking account. Patco
filed suit against People's United in 2009, alleging
negligence, breach of contract, breach of fiduciary duty, unjust
enrichment and conversion.
