The Cyber Looting Awareness & Security Project ("CLASP") was founded in March 2010 by a group of cyber looting/cyber theft victims who believe that online banking should be safe for businesses as well as individuals. Our mission is to achieve a broad legislative solution that will make our belief a reality.

Federal Reserve Regulation E, which governs electronic wire transfers, caps consumer liability for fraud and cyber theft losses at $500 (or $50 if consumers notify their bank within 48 hours of the fraudulent transactions). But Regulation E does not cover commercial accounts! That means that if money is stolen from a commercial account, the bank has no legal obligation to reimburse the victim. Any business too small too have its own IT department is at the mercy of computer hackers located all over the world, and their banks are doing nothing to protect them.

Until and unless banks are held liable under the law for fraud losses on commercial accounts, they will not take the initiative to employ true, strong, multi-factor authentication. This is not because good security is hard to find or expensive to deploy, it is because as the law is currently written the banks have no motive to deploy it!

At CLASProject, we believe the only solution is legislative change. Visit our Action Page to see how you can help.