KeyCorp has accused a business customer of fraudulently initiating wire transfers that could cost the American regional bank up to $90 million.
In an 8-K filing, reported by CNBC, Cleveland-based KeyCorp says it discovered the fraud earlier this month.
In a lawsuit, the customer is identified as payrolls processing firm Interlogic Outsourcing, which “fraudulently initiated wire transfers".
It is alleged that Interlogic CEO Najeeb Khan knew there were not enough funds to cover the transfers.