When U.S. consumers have their online bank accounts hijacked and plundered by hackers, U.S. financial institutions are legally obligated to reverse any unauthorized transactions as long as the victim reports the fraud in a timely manner. But new data released this week suggests that for some of the nation’s largest banks, reimbursing account takeover victims has become more the exception than the rule.
Millions of Americans now filing for unemployment will receive benefits via a prepaid card issued by U.S. Bank, a Minnesota-based financial institution that handles unemployment payments for more than a dozen U.S. states. Some of these unemployment applications will trigger an automatic letter from U.S. Bank to the applicant. The letters are intended to prevent identity theft, but many people are mistaking these vague missives for a notification that someone has hijacked their identity.
Identity thieves stole tax and salary data from payroll giant ADP by registering accounts in the names of employees at more than a dozen customer firms, KrebsOnSecurity has learned. ADP says the incidents occurred because the victim companies all mistakenly published sensitive ADP account information online that made those firms easy targets for tax fraudsters.
Security experts are warning consumers to be especially alert for more targeted email scams in the coming weeks and months, following news that a breach at a major email marketing firm exposed names and email addresses for customers of some of the nation’s largest banks and corporate brand names.