Frost Bank Alerts Business Customers to Security Breach

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The Frost Bank Tower. Photo by Scott Ball.

Scott Ball / Rivard Report

The Frost Bank Tower.

Detecting a possible malicious breach in its systems this week, Frost Bank began notifying commercial customers Friday afternoon that hackers may have gained access to information that could be used to forge checks.

The breach affected Frost Bank’s commercial customers who use lockbox services to make deposits. A lockbox service stores images of checks stored electronically in an image archive. The unauthorized access was limited to a third-party software program serving about 470 commercial customers.

The incident did not impact other Frost systems, the bank said.

Frost Bank spokesman Bill Day said the bank alerted federal law enforcement authorities after discovering the breach and stopping the unauthorized access. The bank is helping with the investigation and also working with a leading cybersecurity firm.

“At Frost, we care deeply about taking care of our customers and protecting their information, and we regret that this situation has occurred,” stated Frost Chairman and CEO Phil Green. “We are working very hard to make things right.”

Cybercrime in the U.S. increased 24 percent in 2016, with losses exceeding $1.3 billion, according to a report issued by the Federal Bureau of Investigation’s Internet Crime Complaint Center.

Frost is urging concerned customers to contact a Frost banker or refer to information posted to the bank’s website.

 

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