Feeds

US bank staff 'sold customer details'

Data theft apology sent to thousands

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

The sale of sensitive banking details to an allegedly bent debt collection agency has triggered warning letters to more than 100,000 US consumers. Bank of America has told about 60,000 customers and Wachovia a further 48,000 that their financial records have been breached. Both banks have offered affected customers free credit monitoring services for a year.

"We are trying to communicate with our customers as promptly as possible," Bank of America spokeswoman Alex Liftman told AP. "So far, we have no evidence that any of our customer information has been used for account fraud or identity theft."

The alleged plot to swipe the banking records of thousands emerged last month after police in Hackensack New Jersey, charged nine people, including seven bank workers, over the scam. The arrests followed a February raid on the home of Orazio Lembo Jr, 35, which recovered 13 computers containing the banking details of customers Bank of America and Wachovia along with clients of Commerce Bank and PNC Bank of Pittsburgh.

Investigators allege Lembo sold bank account details and employment information to collection agencies and law firms through his firm DRL Associates. The information was supplied by corrupt bank workers who were paid $10 a pop for their trouble. Reuters reports that a further two arrests in the case are likely.

The case is the latest in a growing list of security breaches involving personal data to affect companies including ChoicePoint and Reed Elsevier's LexisNexis division over recent months. Agents investigating the security breach at data broker LexisNexis searched the houses of 10 suspects last weekend, Reuters reports. No charges were made immediately following the raids in California, Minnesota and North Carolina by federal agents investigating the March 2005 case. ®

Related stories

Big company, crap security
ID theft is inescapable
LexisNexis data breach far worse than reported
It's official: ChoicePoint, LexisNexis rooted many times
Right of Reply: LexisNexis
Database misuse: who watches the watchers?

The essential guide to IT transformation

More from The Register

next story
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
Chinese hackers spied on investigators of Flight MH370 - report
Classified data on flight's disappearance pinched
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
Researchers camouflage haxxor traps with fake application traffic
Honeypots sweetened to resemble actual workloads, complete with 'secure' logins
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.