Cybercriminals stole over $1 million from a hospital in Washington back in 2013 and now Bank of America could be on the hook for stolen money. The bank doesn't think it should be liable, but the hospital disagrees.
The hackers managed to access Chelan County Hospital No. 1's payroll system and add nearly 100 names that weren't supposed to be there. They then processed three payments worth roughly $1.03 million to these people. Now, the hospital is blaming Bank of America for failing to stop the fraudulent transactions, because it says a hospital employee notified the bank before one of the large payments was processed.
“Craig Scott, a Bank of America employee, contacted the Chelan County Treasurer’s office later that morning and asked if a pending transfer request of $603,575.00 was authorized,” the complaint reads. “No funds had been transferred at the time of the phone call. Theresa Pinneo, an employee in the Chelan County Treasurer’s Office, responded immediately that the $603,575.00 transfer request was not authorized. Nonetheless, Bank of America processed the $603,575.00 transfer request and transferred the funds as directed by the hackers.”
Bank of America was able to get around $400,000 back for the hospital, but that still leaves a lot of money unaccounted for.