Another Step Towards Requiring More Security In Online Transactions?

Another Step Towards Requiring More Security In Online Transactions?

by Christian D. Lavers, posted Friday, February 05, 2010 12:00 AM

The case Patco Construction Co. Inc. v. People's United Bank d/b/a Ocean Bank, D. Maine, No. 2:09-CV-00503-DBH, 1/19/10) is one of several recent cases alleging breaches of online security in financial transactions that may provide some guidelines as to what constitutes "reasonable care" in online financial transactions. The case alleges that use of several "challenge questions" added no practical safety beyond a password, and that additional mechanisms such as authentication tokens are required to meet the commercially reasonable standard. (Commercial banks are required to take "commercially reasonable" steps to protect customers against fraud.)

This case could be one more step towards a requirement of multi-factor authentication in financial transactions.

Comments (0)

Leave A Comment

Title (required)

Name (required)

Email (optional, will not be displayed)

Your URL (optional)

Comments (required)

disclaimer


	Whyte Hirschboeck Dudek S.C. blogs do not provide legal advice for any specific facts or circumstances and should not be construed by the reader for that purpose. The content is intended for general information purposes only and is not intended to create, nor does the receipt of it constitute, an attorney-client relationship.

Blogs By Practice Area


	Posts:24 Technology Law Posts:16 Intellectual Property Posts:10 Tax Exempt Organizations Posts:10 Taxation Posts:9 Intellectual Property Litigation Posts:1 Product Liability Litigation & Risk Avoidance Posts:1 Human Resources Posts:1 Health Care Posts:1 Corporate Transactions & Business Acquisitions Posts:1 Employee Benefits Posts:1 HIPAA Posts:1 Technology - Health Care

Most Recent Posts


	Federal Circuit Raises the Stakes in Patent Marking Cases Imitation is the Strongest Form of Flattery: Just How Strong is the FACEBOOK Trademark? Federal Data Security Law ... Take Three! False Patent Marking: There Must Be an Intent to Deceive D-Day for Nonprofits Starts on May 17 Shortcomings of the UDRP and Domain Name Disputes Yet Another Stopgap: COBRA Extension Presents Administrative Challenges (Expect More) Provena Covenant Loses Exemption Fight in Illinois HIRE Act Signed into Law: Summary of Selected Tax Provisions Rescuecom Drops Google Adwords Lawsuit After Six Years of Litigation Does Your Company Have a Social Media Policy? You Should ... Another Step Towards Requiring More Security In Online Transactions? Gifts and Grants to Foreign Organizations Contribute Now for Haitian Relief and Claim the Deduction Last Year IRS Releases New Check Sheet for Audits of Nonprofit Organizations To Scrip, or Not to Scrip, such may be the question. . . Illinois to Allow the Organization of Low-Profit Limited Liability Companies Technology Transfers Involving Nonprofit Organizations: Special Tax Considerations Court Confirms that No Trademark Registration is Required to Pursue an Anticybersquatting Case Beware of Trademark Registry Scams Court Rejects Settlement Proposal for Data Breach Case Stating There is No Benefit to the Victims Red Flag Rules Take Multiple "Hits" FTC Active in Enforcing Online Security Requirements Regarding Personal Information Mattel and Fisher Price Agree to Landmark Settlement of Consumer Product Lawsuits Simply Complying with PCI May Not Be Enough To Prevent Data Breach Claims Novel Applications of Trademark Law: "Reflashing" Cell Phones Could Constitute Trademark Infringement

DISCLAIMER . CONTACT US . MILWAUKEE . MADISON
©2006 Whyte Hirschboeck Dudek S.C. A leading Wisconsin law firm.
All rights reserved.