Security Snafu at NetBank
L. Taylor - November 15, 1999

Event Summary

NetBank (Nasdaq: NTBK), an Atlanta based internet bank, suffered a major credibility blow last week when a customer named Mahesh Rao reported that he had been inadvertently given access to another customer's account, transaction history, social security number, and funds. Rao had to call NetBank five times before the problem was resolved. According to Tom Cable, Chief Technology Officer of NetBank, the problem occurred due to human error. NetBank is an FDIC insured institution. According to Cynthia Bonnette, spokeswoman for the FDIC, 'Significant implications for security and privacy are raised by this reported incident.'..