Feeds

Feds investigate theft of $3m from NY school

An epidemic continues

The Essential Guide to IT Transformation

The FBI and New York state police are investigating the online theft of more than $3m from a small school district in the western part of the state.

All but $497,200 was eventually recovered after an employee at Norwich, New York-based NBT Bank alerted officials at Duanesburg Central School District to the unusually large overseas transfers and managed to get them reversed. The pilfering happened over a four-day period starting on December 18.

"At this point, they haven't uncovered exactly how the funds were accessed, so that's what they're working on now," said Audrey Hendricks, a spokeswoman for the district.

Tales of multi-million dollar thefts from online bank accounts have become common by now. In November, the FBI estimated that losses to small businesses alone reached $100m as of the end of October. The American Bankers Association and the FBI recently warned small and midsized businesses to limit their online transactions to a single computer that's not used for other activities such as reading email or general web surfing, according to USA Today.

The FBI has investigated more than 200 cases on online bank theft, mostly in 2008 and 2009, in which cybercooks successfully made off with $40 million, the paper reported.

In October, El Reg seconded advice first provided by security reporter Brian Krebs that online banking transactions no longer be carried out using Windows-based PCs.

Hendricks, the school district spokeswoman, said three employees were authorized to conduct online transactions, each on a different computer. None of them is considered a suspect in the theft. The district has about 1,000 students and an annual budget of $14.9m. ®

Build a business case: developing custom apps

More from The Register

next story
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
'Things' on the Internet-of-things have 25 vulnerabilities apiece
Leaking sprinklers, overheated thermostats and picked locks all online
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Only '3% of web servers in top corps' fully fixed after Heartbleed snafu
Just slapping a patched OpenSSL on a machine ain't going to cut it, we're told
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
prev story

Whitepapers

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.