Breach, Data Security

Insurer sues web designer in bank breach

In an effort to shift financial responsibility for a data breach at a community bank, Travelers Casualty and Surety Co. of America has filed suit against the bank's web designer, claiming its negligence and “substandard” maintenance of a website set the stage for a breach.

The insurance company asked in a claim that Ignition Studio be on the hook for $155,000 after it failed to put basic anti-malware on Alpine Bank's server, install critical software patches or maintain adequate encryption, among other deficits that it said led to hackers being able to breach the bank's server and gain access to the site.

The suit noted that Alpine had to “expend significant funds to notify bank customers,” losses that Alpine recouped from Travelers, its insurer.  

The insurance company is seeking to recover what it paid out to Alpine and associated costs.

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