TRC Oil, Kern County

This week Brian Krebs followed up on a story of a lawsuit brought by a California oil company, whose account was siphoned of $299,000 by Ukrainian hackers, against the bank it did business with at the time of the crime.

Last week insurers for United Security Bank of Fresno cut a check for $350,000 to TRC Operating Company of Taft, CA, before the case went to trial. The settlement agreement required neither party to admit fault for the hack. Indirectly, the bank assumed the financial loss, which may have implications for future cases of this kind.

Initially, the bank blamed TRC for the negligence of an employee, who was tricked into downloading malware via a phishing exploit. While that was probably true, the bank’s IT department failed to provide evidence that this was the case, which ended up costing them the case.

What Krebs said bears repeating: “As we have seen time and again, a single virus can ruin your company. And I wouldn’t count on the lawyers to save your firm from the very real cost of a cyberheist: These court challenges can just as easily end up costing the victim business well more than their original loss.”

In the escalating war on cyber crime, preemptive action against phishing scams includes educating employees about malicious email, and includes EdgeWave’s military-quality combination of the strongest artificial intelligence and human analysis on the market.  Visit EdgeWave for more information.

Read the story here.