Feeds

Hackers pluck 8,300 customer logins from bank server

New variation on an old theme scheme

Using blade systems to cut costs and sharpen efficiencies

Hackers have stolen the login credentials for more than 8,300 customers of small New York bank after breaching its security and accessing a server that hosted its online banking system.

The intrusion at Suffolk County National Bank happened over a six-day period that started on November 18, according to a release (PDF) issued Monday. It was discovered on December 24 during an internal security review. In all, credentials for 8,378 online accounts were pilfered, a number that represents less than 10 percent of SCNB's total customer base.

"Although the intrusion was limited in duration and scope, SCNB immediately isolated and rebuilt the compromised server and took other measures to ensure the security of data on the server," the bank, located about an hour east of New York City, stated. "To date, SCNB has found no evidence of any unauthorized access to online banking accounts, nor received any reports of unusual activity or reports of financial loss to its customers."

The breach represents a variation on more traditional types of attacks on online banking. Cyber crooks typically target customers by surreptitiously planting malware on their computers that log their user name and password. The FBI estimates that online banking losses to small and medium-sized businesses alone have reached $100m.

By contrast, accessing a server storing online credentials for tens of thousands of customers isn't the kind of intrusion one hears about every day. Best security practices are clear that passwords should never be stored on servers unless they are encrypted.

The bank began notifying affected customers on Monday evening using first-class mail. The two-week delay "was necessary for making a lot of arrangements so we could come out with an absolutely conclusive statement about what happened," said Douglas Ian Shaw, the bank's corporate secretary. Retail customers whose details were lifted will be given two years worth of credit monitoring services at SCNB's expense.

In the fourth quarter, the bank budgeted $351,000, or about 4 cents per share, to account for expenses related to the intrusion. Additional expenses may be incurred. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
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
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
NEW, SINISTER web tracking tech fingerprints your computer by making it draw
Have you been on YouPorn lately, perhaps? White House website?
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Black Hat anti-Tor talk smashed by lawyers' wrecking ball
Unmasking hidden users is too hot for Carnegie-Mellon
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Own a Cisco modem or wireless gateway? It might be owned by someone else, too
Remote code exec in HTTP server hands kit to bad guys
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.