Courts Extend Legal Protection to Small Firms Whose Accounts Were Hacked

By JOE PALAZZOLO

Small-business owners whose bank accounts have been plundered by cyberthieves until recently had no one to blame but themselves. 

But two recent court rulings are giving those business owners new hope that banks which don't cater to their specific security needs may be held liable for funds stolen by hackers who increasingly have focused on attacking small businesses.

Banks typically are responsible for losses when personal accounts are hacked. But state laws uniformly place the burden on commercial clients to show that banks didn't do enough to protect their money. Read more