Breach

Tennessee company sues its bank for cyberheist losses

TEC Industrial, a Tennessee-based electrical company, has sued TriSummit Bank following a cyberheist that stole $327,804 from the firm.

TEC Industrial, was notified that cyber criminals were targeting its accounts on May 10, 2012 by investigative security journalist Brian Krebs after he was tipped off by a money mule associated with the ruse, according to a filed court complaint.

When the company called to confirm the upload of a payroll batch – worth $202,664.47 – the bank notified TEC that it had already approved a payroll draft of $327,804 to various accounts in the U.S., although per an agreement between the two entities the bank never called to get verification on that order, according to Krebs.

If the case heads to trial, the outcome could help in creating a standard on who's to blame when businesses are the target of a cyberheist.

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