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Cyber Risks · Krebs on Security

Texas Firm Blames Bank for $50,000 Cyber Heist

Summary: Dallas-based Hi-Line Supply Inc. is pressing Community Bank of Rockwall, Texas, to settle a liability claim after intruders broke into its online bank accounts on Aug. 20, 2009 and transferred roughly $50,000 to four individuals with no prior business with the company. Hi-Line president Gary Evans said the fraud began as the company processed its normal $25,000 payroll, with two more near-identical transfer attempts on the following Friday and Monday, and the bank contends hackers infected Evans' computer with a virus to steal his user name, password, PIN and challenge/response questions.

Bottom line: The thieves moved the money through money mules recruited via work-at-home job schemes, including a 28-year-old Phoenix gas station attendant who wired a deposit of more than $8,400 to individuals in Eastern Europe - a reminder that the loss lands on a small business while the bank's online agreement disclaims responsibility for fraud.

Read the original at Krebs on Security ↗

Topics
Data Breaches
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