Feeds

Fraud cops collar two blokes accused of dodging bank's 2-factor auth

Online accounts raided in SMS scam

Securing Web Applications Made Simple and Scalable

Indian police have arrested two men who allegedly circumvented a bank's two-factor authentication protection and looted online accounts.

The pair are suspected of buying victims' personal details from other crooks and then tricking mobile phone companies into giving the duo replacement SIM cards. Anyone in possession of these SIM chips could authorise fraudulent withdrawals and forward the cash to bank accounts set up by lackeys or other money mules.

The online transfers would need to be approved by a one-time authentication code sent to the victim's phone number in a text message; this code must be correctly typed into the banking website to allow the withdrawal.

But these messages will be directed to the mobile in which the replacement SIM is installed, rather than to the victim. Fraudulent transfers can be carried out before a victim realises that his or her mobile has been kicked off the network by the new SIM in the crook's handset and complains to the service provider - presumably in person at a shop or on a landline since marks would be left unable to make anything other than emergency calls using their original SIM card.

The suspects, one aged 39 from Mumbai and the other from Delhi, were arrested by cops from the Economic Offences Wing of India's Criminal Bureau of Investigation, the Indian Financial Express reports.

Indian police said they latched onto the fraud following a complaint from a victim, who alleged that 2,000,000 rupees ($35,000) had been fraudulently transferred from his account at YES Bank in October. Further commentary on the information security aspects of the case can be found in a blog post by Paul Ducklin of Sophos here. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
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
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
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.