A good case for two-factor authentication

A federal judge has denied a request by Citizens Financial Bank to dismiss a suit brought by a couple that was victimized by online thieves. Their stolen funds, from a home equity credit line, were transferred via a bank in Hawaii and then to Austria. The Austrian bank refused to return the funds, according to Finextra, and Citizens thus informed the couple that they would be liable. They refused to pay and Citizens reported their "delinquency" to credit bureaus and moved to foreclose on their home.

One issue here is a standard from the Federal Financial Institutions Examination Council (FFIEC), which called for two-factor authentication. Citizens was in fact moving to such a system when the breach occurred, but the judge ruled: "In light of Citizens' apparent delay in complying with FFIEC security standards, a reasonable finder of fact could conclude that the bank breached its duty to protect Plaintiffs' account against fraudulent access."

For more:
- here's the article

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