European Cyber-Gangs Create Online Crime Wave


Organized cyber-gangs in Eastern Europe are increasingly preying on small and mid-size companies in the United States, setting off a multimillion-dollar online crime wave that has begun to worry the nation’s largest financial institutions, says the Washington Post. A task force representing the financial industry sent out an alert last week outlining the problem and urging its members to implement many of the precautions now used to detect consumer bank and credit card fraud.

Because the targets tend to be smaller, the attacks have attracted little of the notoriety that has followed larger-scale breaches at big retailers and government agencies. But the industry group said some companies have suffered hundreds of thousands of dollars or more in losses. In many cases, the scammers infiltrate companies by sending a targeted e-mail to the company’s controller or treasurer, a message that contains either a virus-laden attachment or a link that — when opened — surreptitiously installs malicious software designed to steal passwords. Armed with those credentials, the crooks then initiate a series of wire transfers, usually in increments of less than $10,000 to avoid banks’ anti-money-laundering reporting requirements.

Comments are closed.