Feeds

City supe slaps bank for account compromise

$378,000 Ukraine transfer

Boost IT visibility and business value

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The $378,000 was withdrawn in four transfers on January 11 and 12 that wiped out the account, which the town used to pay bills.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

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
Microsoft: We plan to CLEAN UP this here Windows Store town
Paid-for apps that provide free downloads? Really
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
Who needs hackers? 'Password1' opens a third of all biz doors
GPU-powered pen test yields more bad news about defences and passwords
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Hear ye, young cyber warriors of the realm: GCHQ wants you
Get involved, get a job and then never discuss work ever again
Chinese hackers spied on investigators of Flight MH370 - report
Classified data on flight's disappearance pinched
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?