Evaluation of a Fraud Detection System

Analysis Group was retained on behalf of a financial services company, the defendant in a litigation matter against a bank with whom the defendant had a “correspondent banking” relationship. The defendant was accused of failing to provide proper cybersecurity safeguards for international wire transfers, which the plaintiff claimed resulted in a malware attack causing the bank to transfer millions of dollars to accounts set up by hackers across the globe. The plaintiff alleged that our client’s fraud detection system should not have been considered commercially reasonable, given that it allowed the fraudulent transfers to be processed. Our team supported an affiliated expert in examining the anomaly detection and opining on whether the defendant’s fraud detection system met commercial industry standards. The case settled.