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This is NOT a result of LL's TOS. They refunded the initial $20,500 with no problem. This was a hack of web boxes that hold the data inworld. I have in front of me IP address and the transcript of the brute force attack on the banks database. Considering the victim toll is up to 5 banks now, this will get worse before it gets better. The 5 banks are:

L&L Bank and Trust
SL Investor's Bank (Tyrian Camillo, no losses)
Giovinazzo Choice Investments (Barton Giovinazzo)
Whitfield Holdings/Royal Invest (Cristopher Whitfield)
SL Business Bank (Anre Heron)

The avatars in question are:

Betatester Allen
Hamid Jewell
Hamid Alter

There are more banks but I think some are afraid to spill the beans. If your bank is affected please let someone know as this is the only way to fight this with Linden Labs. From a community stand point, we have to band together and do something.