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Questions on Electronic Transfer Funds

By IBLS Editor

My company had funds illegally transferred from it's checking account by someone who managed to gain access to a computer in our office via a remote computer. This person entered the bank's ACH payment system and transferred two payments to seperate bank accounts at Bank of America and Wachovia back in the amounts on $7,200 and $7,400. We became aware of these unathorized transaction on the April 23. The transfer were initiated on the 21st and the 22nd of April and the funds left our account on the 22nd and 23rd or April. We reported this to the bank at 11AM on April 23rd as soon as we become aware of the theft. I have filed the required affidavits with the bank and notified the bank in writing that these transactions were fraudulant. We are located in Maine, the transfers were initiated from a computer in New York and the funds were transferred to banks in NC and CA. Neither we nor the bank believe these transferred were initiated by anyone in our employment. The bank has stated that because the person who initiated these transfers gained access to our passwords via our network, our business is fully liable for the transfers. My questions are? 1.) Does the means by which unauthorized transfers are initiated affect right to recover funds. 2.) Are business protected like consumer under electronic banking laws. Thank you.

Full post as published by IBLS Internet Law Blog on May 17, 2009 (boomark / email).