Security Corner

Mar 11 2010   2:36AM GMT

$120M Stolen by Hackers in Three Months

Ken Harthun Ken Harthun Profile: Ken Harthun

David Nelson, an examination specialist with the FDIC, says that online banking fraud involving the electronic transfer of funds rose to over $120 million in the third quarter of 2009. He presented his estimates Friday at the RSA Conference in San Francisco.

I wrote about this in October, 2009 in my article, “Protecting Your Business From Online Banking Fraud.” I wasn’t the only one to advocate secure read-only systems to use for banking, but it looks like the message didn’t spread very far. Businesses need a security manager to prevent such losses.

Let’s see, if I was to charge, say, 1% fee based on the monthly ACH transfer volume of a given company to keep them secure and that company was doing $1M/mo., that would be a good living. Hmmm…just might have to look into that.

Better to pay 1% than to lose 100%, don’t you think? Especially when you consider this: “Commercial deposit accounts do not receive the reimbursement protection that consumer accounts have, so a lot of small businesses and nonprofits have suffered some relatively large losses,” Nelson said. Bullitt County, Kentucky suffered a loss of $415,000: PC Invader Costs Ky. County $415,000.

Wake up, people!

 Comment on this Post

There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to:

Share this item with your network: