Friday, February 5, 2010

Should LEDA sue PlainsCapital?

It's amazing how much bad publicity one little lawsuit can generate. And PlainsCapital, formerly of Lubbock, has managed to put it's foot in it good. If I was in investor I would be seriously questioning the leadership of the company right now. And if I were part of the Lubbock Economic Development Alliance I would be looking at damage control for Lubbock's reputation.

From the Denver Post: Lewis: Firm sued for being robbed

Why would I be looking at damage control? Because some of the authors of national stories about PlainsCapital suing Hillary Machinery don't know that PlainsCapital is now based in Dallas. So  the stories talk about Lubbock based PlainsCapital, and proceed to make PlainsCapital - and Lubbock - look like a bunch of ignorant hicks.

ComputerWorld: Bank sues victim of $800,000 cybertheft

Of course, unless they had security measures in place that they aren't mentioning and someone just messed up, PlainsCapital acted like ignorant hicks, then acted more ignorant by trying to sue for vindication. I said it in the comments of my original post on this subject that email is not a secure verification method, and that point is being made by other observers. It's not like an expensive, high tech solution was needed. A simple requirement that no transfers be made without a phone call to verify they're legit would have prevented this.

From the codetechnology blog: Authentication issue at heart of lawsuit

So what would LEDA sue PlainsCapital for? Or maybe it should be the City of Lubbock suing them? I'm thinking defamation of character, damage to their brand, brand dillution...shoot, I don't know, but surely there's some stupid lawsuit they can hit them with that won't be as stupid as PlainsCapitals suit against Hillary.

From BankinfoSecurity.com: Texas Bank Sues Customer After $800,000 Scam

And a few more just because four stories don't demonstrate how widely this is being reported:

From Foxnews: A video clip

From Dallas Morning News: PlainsCapital suing customer Hillary Machinery over cybersecurity

From the e-business blog: Cybertheft victim gets sued by bank

From Techdirt: Bank Sues Identity Fraud Victim After $800,000 Removed From Its Account

And from the forums at Barrelhorseworld.com: We were cyber attacked/robbed...

Enjoy your weekend.