Feeds

City supe slaps bank for account compromise

$378,000 Ukraine transfer

SANS - Survey on application security programs

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The $378,000 was withdrawn in four transfers on January 11 and 12 that wiped out the account, which the town used to pay bills.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. ®

High performance access to file storage

More from The Register

next story
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Snowden-inspired crypto-email service Lavaboom launches
German service pays tribute to Lavabit
Mounties always get their man: Heartbleed 'hacker', 19, CUFFED
Canadian teen accused of raiding tax computers using OpenSSL bug
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.