Should Banks be Liable for Business Losses to Fraud?
Vendor Pushes for New Protections for Commercial Accounts
Excerpt from Bank Info Security Article
Published: April, 07, 2010
Author: Linda McGlasson, Managing Editor
"In the wake of opposing lawsuits by banks and customers over ACH fraud and "reasonable security," business and bank advocates are at odds over whether federal regulations should be amended to enhance commercial protection.
Jim Woodhill, founder and chairman of information security vendor Authentify, has met with congressional staffers and is scheduling meetings to talk to top lawmakers, including New York Senator Charles Schumer and House representatives Sam Johnson and Jeb Hensarling. He is asking them to amend Regulation E to include business accounts under the same stipulated fraud loss amounts as consumer accounts -- or to write a new law to limit the amount of fraud losses a business could bear from fraudulent ACH or wire transfers."
Link to Full Article
About Authentify, Inc.
Authentify, Inc. is the leading provider of telephone-based, out-of-band authentication services. These services enable organizations that need strong security to quickly and cost-effectively add 2-factor or 3-factor authentication layers to user logon, transaction verifications or critical changes such as adding a payee to an e-pay or wire account. The company’s patented technology employs a service oriented message architecture and XML API to seamlessly integrate into existing security processes. Authentify markets primarily to financial services firms that need to protect their clients’ online accounts, corporate security professionals managing corporate access control, and e-merchants who want to limit fraud on their sites.
