Bill Would Give Cities, Towns and Schools Same e-Banking Security Guarantees as Consumers

Brian Krebs reports:

In response to a series of costly online banking heists perpetrated against towns, cities and school districts, Sen. Charles Schumer (D-NY) has introduced legislation that would extend those entities the same protections afforded to consumers who are victims of e-banking fraud.

Under “Regulation E” of the Electronic Funds Transfer Act (EFTA) consumers are not liable for financial losses due to fraud — including account takeovers due to lost or stolen usernames and passwords — as long as they promptly report the unauthorized activity.