Security Magazine logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Security Magazine logo
  • NEWS
    • Security Newswire
    • Technologies & Solutions
  • MANAGEMENT
    • Leadership Management
    • Enterprise Services
    • Security Education & Training
    • Logical Security
    • Security & Business Resilience
    • Profiles in Excellence
  • PHYSICAL
    • Access Management
    • Fire & Life Safety
    • Identity Management
    • Physical Security
    • Video Surveillance
    • Case Studies (Physical)
  • CYBER
    • Cybersecurity News
    • More
  • BLOG
  • COLUMNS
    • Cyber Tactics
    • Leadership & Management
    • Security Talk
    • Career Intelligence
    • Leader to Leader
    • Cybersecurity Education & Training
  • EXCLUSIVES
    • Annual Guarding Report
    • Most Influential People in Security
    • The Security Benchmark Report
    • The Security Leadership Issue
    • Top Guard and Security Officer Companies
    • Top Cybersecurity Leaders
    • Women in Security
  • SECTORS
    • Arenas / Stadiums / Leagues / Entertainment
    • Banking/Finance/Insurance
    • Construction, Real Estate, Property Management
    • Education: K-12
    • Education: University
    • Government: Federal, State and Local
    • Hospitality & Casinos
    • Hospitals & Medical Centers
    • Infrastructure:Electric,Gas & Water
    • Ports: Sea, Land, & Air
    • Retail/Restaurants/Convenience
    • Transportation/Logistics/Supply Chain/Distribution/ Warehousing
  • EVENTS
    • Industry Events
    • Webinars
    • Solutions by Sector
    • Security 500 Conference
  • MEDIA
    • Videos
      • Cybersecurity & Geopolitical Discussion
      • Ask Me Anything (AMA) Series
    • Podcasts
    • Polls
    • Photo Galleries
  • MORE
    • Call for Entries
    • Classifieds & Job Listings
    • Continuing Education
    • Newsletter
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • This Month's Content
    • Advertise
  • SIGN UP!
Cybersecurity NewsBanking/Finance/Insurance

Hospital Sues Bank of America Over Cyberheist

Generic Image for Cyber Security
March 4, 2015

A public hospital in Washington state is suing Bank of America to recoup some of the losses from a $1.03 million cyberheist that the healthcare organization suffered in 2013.

"In April 2013, organized cyber thieves broke into the payroll accounts of Chelan County Hospital No. 1 , one of several hospitals managed by the Cascade Medical Center in Leavenworth, Wash. The crooks added to the hospital’s payroll account almost 100 “money mules,” unwitting accomplices who’d been hired to receive and forward money to the perpetrators," reported Krebs on Security. 

"On April 19, and then again on April 20, the thieves put through a total of three unauthorized payroll payments (known as automated clearing house or ACH payments), siphoning approximately $1 million from the hospital," said Krebs on Security. 

"Bank of America was ultimately able to get back roughly $400,000 of the fraudulent payroll payments. But in a complaint filed against the bank," said Krebs on Security, the hospital alleges that an employee on the Chelan County  Treasurer’s staff noticed something amiss the following week and alerted the bank to the suspicious activity. However, Bank of America still processed an unauthorized transfer request and transferred the funds as directed by the hackers.

"Chelan County alleges breach of contract, noting that the agreement between the county and the bank incorporates rules of the National Automated Clearinghouse Association (NACHA), and that those rules require financial institutions to implement a risk management program for all ACH activities; to assess the nature of Chelan County’s ACH activity; to implement an exposure limit for Chelan County; to monitor Chelan County’s ACH activity across multiple settlement dates; and to enforce that exposure limit. The lawsuit alleges that Bank of America failed on all of those counts, and that it ran afoul of a Washington state law governing authorized and verified payment orders," said Krebs on Security. 

In a response filed with the U.S. District Court for the Eastern District of Washington at Spokane, Bank of America denied nearly all of the allegations in the lawsuit. 

Read more: https://krebsonsecurity.com/2015/03/hospital-sues-bank-of-america-over-million-dollar-cyberheist/ 

KEYWORDS: cyber security cyber theft data theft lawsuit payroll

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • Security's Top Cybersecurity Leaders 2024

    Security's Top Cybersecurity Leaders 2024

    Security magazine's Top Cybersecurity Leaders 2024 award...
    Security Leadership and Management
    By: Security Staff
  • cyber brain

    The intersection of cybersecurity and artificial intelligence

    Artificial intelligence (AI) is a valuable cybersecurity...
    Cybersecurity
    By: Pam Nigro
  • artificial intelligence AI graphic

    Assessing the pros and cons of AI for cybersecurity

    Artificial intelligence (AI) has significant implications...
    Cybersecurity Education & Training
    By: Charles Denyer
Subscribe For Free!
  • Security eNewsletter & Other eNews Alerts
  • eMagazine Subscriptions
  • Manage My Preferences
  • Online Registration
  • Mobile App
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Security audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Security or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Crisis Response Team
    Sponsored byEverbridge

    Automate or Fall Behind – Crisis Response at the Speed of Risk

  • Perimeter security
    Sponsored byAMAROK

    Why Property Security is the New Competitive Advantage

  • Duty of Care
    Sponsored byAMAROK

    Integrating Technology and Physical Security to Advance Duty of Care

Popular Stories

Pills spilled

More than 20,000 sensitive medical records exposed

Coding on screen

Research reveals mass scanning and exploitation campaigns

Laptop in darkness

Verizon 2025 Data Breach Investigations Report shows rise in cyberattacks

Computer with binary code hovering nearby

Cyberattacks Targeting US Increased by 136%

White post office truck

Department of Labor Sues USPS Over Texas Whistleblower Termination

2025 Security Benchmark banner

Events

May 22, 2025

Proactive Crisis Communication

Crisis doesn't wait for the right time - it strikes when least expected. Is your team prepared to communicate clearly and effectively when it matters most?

September 29, 2025

Global Security Exchange (GSX)

 

View All Submit An Event

Products

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

See More Products

Related Articles

  • cyber_email

    Hospital Sues Bank of America Over Cyberheist

    See More
  • New Newswire Feature Image 3/8/2012

    Firm Sues Bank over Cyberheist

    See More
  • Locked bank vault

    Security experts discuss recent Bank of America data breach

    See More

Related Products

See More Products
  • databasehacker

    The Database Hacker's Handboo

  • facility manager.jpg

    The Facility Manager's Guide to Safety and Security

See More Products
×

Sign-up to receive top management & result-driven techniques in the industry.

Join over 20,000+ industry leaders who receive our premium content.

SIGN UP TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing