A 1.5MM Fraud Mystery: Who is Responsible for Heist that Closed a Business?


Between December 2012 and January 2013, Efficient Services Escrow Group of Irvine, Calif., had $1.5 million drained from its account with First Foundation Bank. Three separate wire transfers were made to accounts in Russia and China, yet no one raised a flag until Feb. 22, when it was too late to recover most of the funds.

On Feb. 28, the California Department of Corporations stepped in and froze the escrow company's activity.

Since then, a state investigation determined Efficient Services was the victim of a cyber-attack. But the escrow company, unable to make up for its losses, has closed.

This Bank Info Security Article features Bernstein Shur Attorney Dan Mitchell.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Cyber Attacks, Cybersecurity, Escrow Accounts, Foreign Banks, Fraud

Published In: General Business Updates, Criminal Law Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bernstein Shur | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »