House Committee to Probe e-Banking Heists
Summary: Tennessee Electric Company Inc., a Kingsport, Tenn. construction and maintenance contractor, lost $328,000 in an account takeover in which thieves intercepted a one-time password from the controller's key fob, redirected her browser to a fake maintenance page, and used her session to send fraudulent payroll ACH payments to at least 50 money mules. CEO Greg R. Boehling said Tri-Summit Bank was supposed to call for approval before ACH transfers but did not, and the company, not the bank, is legally responsible for the loss, with about one-third recovered so far and the FBI investigating.
What you should know: The company is on the hook for the full $328,000 because businesses, unlike consumers, carry liability for cyber theft - and the one control that might have stopped it, a verbal approval call the bank had made even for a $50 expense report, did not happen.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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