A public hospital in Washington state is suing Bank of America to recoup some of the losses from a $1.03 million cyberheist that the healthcare organization suffered in 2013.
In April 2013, organized cyber thieves broke into the payroll accounts of Chelan County Hospital No. 1 , one of several hospitals managed by the Cascade Medical Center in Leavenworth, Wash. The crooks added to the hospital’s payroll account almost 100 “money mules,” unwitting accomplices who’d been hired to receive and forward money to the perpetrators.
If you receive direct deposits from the Social Security Administration but haven’t yet registered at the agency’s new online account management portal, now would be a good time take care of that: The SSA and financial institutions say they are tracking a rise in cases wherein identity thieves register an account at the SSA’s portal using a retiree’s personal information and have that retiree’s benefits diverted to prepaid debit cards that the crooks control.
A fuel distribution firm in North Carolina lost more than $800,000 in a cyberheist this month. Had the victim company or its bank detected the unauthorized activity sooner, the loss would have been far less. But both parties failed to notice the attackers coming and going for five days before being notified by a reporter.
A Christmas Eve cyberattack against the Web site of a regional California financial institution helped to distract bank officials from an online account takeover against one of its clients, netting thieves more than $900,000.
A decision handed down by a federal appeals court this week may make it easier for small businesses owners victimized by cyberheists to successfully recover stolen funds by suing their bank.
The U.S. Federal Court of Appeals for the First Circuit has reversed a decision from Aug. 2011, which held that Ocean Bank (now People’s United) was not at fault for a $588,000 cyberheist in 2009 against one of its customers — Patco Construction Co. The appeals court sent specific aspects of the earlier decision back to the lower court for review, but it encouraged both parties to settle the matter out of court.
The number of consumer and financial records compromised as a result of data breaches in 2010 fell dramatically compared to previous years, a shift that cybercrime investigators attribute to a sea-change in the motives and tactics used by criminals to steal information. At the same time, organizations are dealing with more breaches than ever before, and most data thefts continue to result from security weaknesses that are relatively unsophisticated and easy to prevent.