Posts Tagged: swift financial


23
Feb 10

IT Firm Loses $100,000 to Online Bank Fraud

A New Hampshire-based IT consultancy lost nearly $100,000 this month after thieves broke into the company’s bank accounts with the help of 10 co-conspirators across the United States.

On Feb. 10, Hudson, N.H. based Cynxsure LLC received a voicemail message from its bank, Swift Financial, a Wilmington, Del. institution that focuses on offering financial services to small businesses. The message said to contact the bank to discuss an automated clearing house (ACH) payment batch that had been posted to Cynxsure’s account.

The next day, Cynxsure’s owner Keith Wolters returned the call and learned from Swift that someone had put through an unauthorized batch of ACH transfers totaling $96,419.30. The batch payment effectively added 10 new individuals to the company’s payroll, sending each slightly less than $10,000. None of the individuals had any prior business or association with Cynxsure.

Wolters said the bank told him it would try to reverse the transfers, and in the meantime it issued the company a provisional credit, replacing all of the stolen funds. But when he went to draw on that amount, Wolters found he was not able to withdraw money from the account. The next day, Wolters said, the bank reported that it had been unable to reverse the transactions. Shortly thereafter, he said, Swift withdrew the provisional credit.

Cynxsure’s attorney is now drawing up papers to sue the bank.

“We have done our best to make sure we’ve done everything we possibly can to protect our side of the equation,” Wolters said. “We’ve put a lot of time and effort into making sure something like this couldn’t have come from our side. We’re not going to be one of those companies that goes quietly into the night after something like this.”

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