Fire Alarm Company Burned by e-Banking Fraud
Summary: An Arkansas fire alarm company, JE Systems Inc., lost more than $110,000 after attackers used its stolen online banking credentials to push through two payroll batches of $45,000 and $67,000 at 2 a.m. on a Monday, and First National Bank of Fort Smith then sent a letter saying it would not be responsible for the loss. The money was moved out through at least a dozen money mules who withdrew cash, wired funds to Ukraine and Moldova, and kept about eight percent in commission.
Key Takeaway: Businesses do not get the same legal protection against online banking fraud that consumers do, and the bank's stated basis for denying the claim was that the payments came from the company's own IP address and used its own username and password. Most victims who lost substantial sums did not notice the missing money for more than 24 hours, which sharply reduces the chance of recovery.
Read the original at Krebs on Security ↗
- Topics
- Data Breaches
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