Feeds

Six in California indicted for online bank fraud

Criminal enterprise allegedly earned $383,000 in 8 months

The Power of One eBook: Top reasons to choose HP BladeSystem

Six California men accused of breaking in to online bank accounts and funneling out the proceeds have been indicted for bank and wire fraud and money laundering. The 53-count indictment could carry a sentence of as much as 30 years in prison and a fine of $1m.

The defendants, all from Fresno, allegedly netted $383,000 in the scheme, which ran from November 2003 to July 2004, according to the indictment, which is surprisingly vague on some key details about how they pulled it off. Two of them "acquired a software program from a free online source which allowed them to scan/surf the Internet for shared resources on other computers and which allowed the defendants to access those computers for its program backup files."

(Sounds like we're talking about a publicly available bot like rxbot, but we can't be sure. We also aren't told how many accounts they compromised.)

The defendants were then able to glean login credentials for online banks by rummaging through backup files related to Quicken, Quickbooks and Microsoft Money on the machines they illegally accessed. With this important information, the defendants then transferred money out of victims' online accounts. In addition to funneling money into an account established under a sham company called West Coast Data Systems, the defendants also used a service called Qchex, which allows the secure sending of printable checks over the net.

The men were also accused of depositing bad checks into the compromised accounts and then withdrawing the funds before the transactions had closed. ®

Designing a Defense for Mobile Applications

More from The Register

next story
DARPA-derived secure microkernel goes open source tomorrow
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
Four fake Google haxbots hit YOUR WEBSITE every day
Goog the perfect ruse to slip into SEO orfice
Putin: Crack Tor for me and I'll make you a MILLIONAIRE
Russian Interior Ministry offers big pile o' roubles for busting pro-privacy browser
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.