Legal Seminar, Chicago, IL

Remember Experi-Metal ?

 Court determined that the bank used “commercially reasonable” security procedure  Remaining question regarding bank’s good faith, however  Court conducted a six-day trial on question of good faith  Experi employee received a phishing e-mail targeting Comerica’s customers  Employee clicked on the link in the phishing e-mail, and was directed to a webpage where he entered user credentials  The next several hours: 97 wire transfers moved $1.9 million

Comerica should have recognized a problem

 Volume and frequency of the payment orders  $5 million overdraft created by book transfers in what was regularly a zero balance account  Experi’s limited prior wire activity  Destinations and beneficiaries  Comerica’s knowledge of prior and the current phishing attempts