US regulators warn banks on rise in cyber attacks

2014-04-03 12:00
(Duncan Alfreds, News24)

(Duncan Alfreds, News24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

kalahari.com

Washington - A group of top US regulators on Wednesday warned about the threat of rising cyber attacks on bank websites and cash machines, urging the industry to put proper measures in place to guard against fraud.

The Federal Financial Institutions Examination Council (FFIEC) said it had seen a rise of so-called denial-of-service attacks on bank websites, which were sometimes a cover for criminals committing fraud.

The group described one recent case in which criminals stole $40m from just 12 accounts - far exceeding the actual balance held by clients - in a sophisticated scheme known as an "Unlimited Operations" fraud.

Massive client data breaches at retailers Target and Neiman Marcus put the focus on cyber security in March, leading banks and retail groups to join forces to try and fix the issues.

The problems described by the FFIEC, which comprises top officials from the Federal Reserve and other bank regulators, are of a different nature, if no less harmful.

Cyber campaign

In the "Unlimited Operations" fraud, criminals might begin an attack by installing malicious software on a bank's computers through phishing e-mails, and then hack into control panels to raise limits on how much a cash machine can dispense.

In the final phase, the criminals withdraw large amounts of money from a number of cash machines within four hours to two days with stolen bank cards, often on weekends because that is when there is more money in the machines.

Such operations can be accompanied by a denial-of-service attack, in which a bank's website is flooded with information requests so that it slows down or completely stops working for clients with legitimate requests.

There was an increase in such attacks in the latter half of 2012, the FFIEC said, although these were often also launched by politically motivated groups.

In 2012, Ally financial, Bank of America, Wells Fargo & Company and other banks suffered denial of service attacks. Sources at the time said the attacks could be part of a year-long cyber campaign waged by Iranian hackers to protest against an anti-Islam video on the internet.
Read more on:    us  |  cybercrime
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/Movies
Traffic & Train Alerts
Traffic
Kuils River 17:58 PM
Road name: Polkadraai Road Eastbound

ROADWORKS between the R102 Van Riebeeck Road and the R310 Baden Powell Drive exit - expect delays

Montague Gardens 12:06 PM
Road name: Montague Drive

ROADWORKS - lane closures both directions for BRT lane construction - DELAYS towards Bosmansdam Road

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Up to 60% off - clearance sale!

Save up to 60% on appliances, books, electronics, toys, movies and more. Offer valid while stocks last. Shop now!

Deal of the Week!

Get bestselling John Green novels now just R99 each! Hurry and get yours while stocks last. Shop here.

Mind blowing deals on beauty & fragrances

Save up to 30% off beauty and fragrances. Offer valid while stocks last. Shop now!

Up to 50% off hair care products!

Save up to 50% on professional hair care products at kalahari.com. Offer valid while stocks last. Shop now!

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Jan 21 - Feb 18
Jan 21 - Feb 18

You may be inspired to do things that expand your mind in a big way today. You have a need to explore and a need to please....read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.