Feeds

US bank staff 'sold customer details'

Data theft apology sent to thousands

  • alert
  • submit to reddit

Website security in corporate America

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?

Protecting users from Firesheep and other Sidejacking attacks with SSL

More from The Register

next story
Early result from Scots indyref vote? NAW, Jimmy - it's a SCAM
Anyone claiming to know before tomorrow is telling porkies
Home Depot: 56 million bank cards pwned by malware in our tills
That's about 50 per cent bigger than the Target tills mega-hack
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
UK.gov lobs another fistful of change at SME infosec nightmares
Senior Lib Dem in 'trying to be relevant' shocker. It's only taxpayers' money, after all
Critical Adobe Reader and Acrobat patches FINALLY make it out
Eight vulns healed, including XSS and DoS paths
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
TOR users become FBI's No.1 hacking target after legal power grab
Be afeared, me hearties, these scoundrels be spying our signals
Blood-crazed Microsoft axes Trustworthy Computing Group
Security be not a dirty word, me Satya. But crevice, bigod...
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.