Feeds

City supe slaps bank for account compromise

$378,000 Ukraine transfer

The Essential Guide to IT Transformation

A supervisor for the town of Poughkeepsie, New York lashed out at a local bank after someone siphoned $378,000 out of municipal coffers and transferred it to Ukraine.

Supervisor Patricia Myers, who waited more than three weeks to disclose details of the heist, didn't question whether any of the responsibility rested with officials who administered the town's banking account. Instead, she blamed TD Bank officials for not immediately reporting the transfers, according to reports here and here in The Poughkeepsie Journal.

"We find it unacceptable that movement, or attempted movement, of money from a town account to an account in Eastern Europe did not immediately raise a red flag with a bank, was not questioned by anyone at the bank, but was simply processed," Myers said in a statement read before the Town Board of Supervisors meeting Wednesday.

The $378,000 was withdrawn in four transfers on January 11 and 12 that wiped out the account, which the town used to pay bills. The theft was discovered on January 13 by the town's comptroller. Of the stolen loot, $95,000 has since been recovered. The town is working to recover the remainder.

Over the past few years, attacks on the online bank accounts of municipalities and small businesses have reached epidemic proportions. The FBI said recently it has investigated more than 200 cases of online bank theft, mostly in 2008 and 2009, in which cybercooks successfully made off with $40m, the paper reported. In all, more than $100m was targeted.

Last month, a small school district in the western part of New York state reported having more than $3m stolen from its online account before recovering all but $497,200 of that amount.

The crimes are generally carried out by organized criminal gangs, mostly located in Eastern Europe and usually succeed by tricking people with access to the account into installing password sniffers and other malware on their machines.

Myers said town officials have changed all account numbers and removed computers that had access to the accounts. She didn't say whether malware was found on them. ®

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
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
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
Tor attack nodes RIPPED MASKS off users for 6 MONTHS
Traffic confirmation attack bared users' privates - but to whom?
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
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.