A defunct escrow firm is suing its former bank after losing more than $1 million to cyber criminals this past August.
The California-based company, Efficient Service Escrow, claims First Foundation Bank's security procedures directly led to three fraudulent wire transfers, which resulted in more than $1 million in unrecovered funds, according to Krebs on Security.
Because the bank processed the transfers, the firm claims the bank's security protocol is to blame for the losses. The bank wasn't acting in “good faith” when it approved the transfers, according to the suit. First Foundation argues that it previously processed international wire transfers and saw no warning signs for these particular transactions.
The lawsuit is filed in the Superior Court for Orange County.