International Online Crime Wave Concerns Financial Community

Today, The Washington Post ran a story about how organized cyber-gangs in Eastern Europe are increasingly preying on small and mid-size companies in the United States. The result of this crime wave has begun to be a major concern for our nation’s financial community. The Financial Services Information Sharing and Analysis Center, an industry trade group that shares data about critical threats to the financial community, sent out an alert about this issue to its members, which include American Express, Morgan Stanley Bank of America, Citigroup and Fannie Mae.

Although these cyber-attacks are geared towards smaller businesses, it is still an issue for the larger financial community. And, according to the Post, the repercussions are being felt by smaller organizations, such as a school district near Pittsburgh that sued to recover $700,000, as well as a it. In May, a Texas company was robbed of $1.2 million. This is significant money for smaller organizations.

According to the alert from The Financial Services Information Sharing and Analysis Center, the bad guys send a targeted e-mail to the company’s controller or treasurer with a message that contains either a virus-laden attachment or a link. When the link is opened it installs malicious software that steals passwords. From there, the crooks initiate a series of wire transfers — taking less than $10,000 at a time to to avoid any anti-money-laundering reporting requirements.

Something as simple as clicking a link can cause such financial devastation. Again, as we have covered in the past, the bad guys are often one-step ahead. And, we applaud The Financial Services Information Sharing and Analysis Center, as well as Brian Krebs at The Washington Post, for bringing this issue to light. This education campaign exposes just how easy it is for the bad guys to rob an honest business.