Feeds

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

Online accounts raided in SMS scam

Providing a secure and efficient Helpdesk

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. ®

New hybrid storage solutions

More from The Register

next story
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Google recommends pronounceable passwords
Super Chrome goes into battle with Mr Mxyzptlk
Reddit wipes clean leaked celeb nudie pics, tells users to zip it
Now we've had all THAT TRAFFIC, we 'deplore' this theft
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
TorrentLocker unpicked: Crypto coding shocker defeats extortionists
Lousy XOR opens door into which victims can shove a foot
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
Microsoft to patch ASP.NET mess even if you don't
We know what's good for you, because we made the mess says Redmond
NORKS ban Wi-Fi and satellite internet at embassies
Crackdown on tardy diplomatic sysadmins providing accidental unfiltered internet access
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.