Category Archives: LITIGATION

Virginia Court in Email ACH Funds Transfer Fraud Case Relies on NACHA Rules in Permitting Claims Against Bank

As L&R has showed, careful application of NACHA’s rules can be critical to resolving funds transfers losses involving ACH transfers. See L&R Obtains Prompt Full Recovery for Polish Client in ACH Cybercrime Case. A recent Virginia case illustrates the relevance … Continue reading

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Nevada Bench Trial Applies UCC in Allocating Loss Between Hacked Seller and Duped Buyer

In cybercrime cases, there often are two victims: one a business subject to an email hack and another that transmits funds based on fraudulent wire instructions from the hacked email account.  Which party should bear the loss? A Nevada federal … Continue reading

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Salvatore Scanio’s Article on the NAIC Insurance Data Security Model Law Published by ABA’s Cybersecurity and Data Privacy Committee

Salvatore Scanio’s article, NAIC Insurance Data Security Model Law: Key Provisions and Adoption to Date, was recently published by the American Bar Association, Tort Trial & Insurance Practice Section, Cybersecurity and Data Privacy Committee (Winter 2021). The NAIC Model, issued … Continue reading

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L&R Obtains Prompt Full Recovery for Polish Client in ACH Cybercrime Case

A U.S. subsidiary of a Polish company suffered a loss of nearly $100,000 arising from 10 unauthorized ACH (automated clearing house) debits over a single week.  After an unknown theft of the subsidiary’s bank account number and bank name/routing number, … Continue reading

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D.C. Law Firm Victim of Email Wire Fraud Fails to Sufficiently Plead Bank Aiding and Abetting

A recent email funds transfer fraud case illustrates a novel claim against a bank dismissed at the pleading stage.  Beins, Axelrod, PC v. Analytics, LLC, 2020 U.S. Dist. LEXIS 71713 (D.D.C. Apr. 23, 2020).  After a D.C. law firm, seeking its … Continue reading

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