Article 4A of the Uniform Commercial Code deals with reasonable security measures for banks. It’s an attempt to allocate risk between banks and their commercial customers when electronic fraud occurs. The measure played an important role in the PATCO Construction case, when an appellate court reversed a lower court ruling that favored the former Ocean Bank, now part of People’s United Bank, describing the bank’s security procedures as “commercially unreasonable” The case was eventually settled out of court (see: PATCO Fraud Dispute Settled)”]
Source: https://www.cuinfosecurity.com/fraud-responsibility-revamp-rules-a-6211