It's All Fun And Games Until Someone Loses 1 Billion Dollars!



Today it's very hard to admit that our computer systems, let alone our financial systems are vulnerable to attack, yet every year the news gets worse and worse.  One day, it's personal information, the next someone is stealing 1 billion dollars from 100 banks across the globe.

In a report to be published last week, Kaspersky Lab says that the scope of this attack on more than 100 banks and other financial institutions in 30 nations could make it one of the largest bank thefts ever — and one conducted without the usual signs of robbery.

The Moscow-based firm says that because of nondisclosure agreements with the banks that were hit, it cannot name them. Officials at the White House and the F.B.I. have been briefed on the findings, but say that it will take time to confirm them and assess the losses.

Kaspersky Lab says it has seen evidence of $300 million in theft through clients; however, if you believe that is all they have taken over a 2 year period, well then we have some property to sell you.

In their defense, that projection is impossible to verify because the thefts were limited to $10 million a transaction, though some banks were hit several times. 

In many cases the hauls were more modest, presumably to avoid setting off alarms.

The majority of the targets were in Russia, but many were in Japan, the United States and Europe.

No bank has come forward acknowledging the theft, a common problem that President Obama alluded to on Friday when he attended the first White House summit meeting on cybersecurity and consumer protection at Stanford University. He urged passage of a law that would require public disclosure of any breach that compromised personal or financial information.

But the industry consortium that alerts banks to malicious activity, the Financial Services Information Sharing and Analysis Center, said in a statement that “our members are aware of this activity. We have disseminated intelligence on this attack to the members,” and that “some briefings were also provided by law enforcement entities.” 

As in the recent attack on Sony Pictures, which Mr. Obama said again on Friday had been conducted by North Korea, the intruders in the bank thefts were enormously patient, placing surveillance software in the computers of system administrators and watching their moves for months. The evidence suggests this was not a nation state, but a specialized group of cybercriminals.

But the question remains how a fraud of this scale could have proceeded for nearly two years without banks, regulators or law enforcement catching on. Investigators say the answers may lie in the hackers’ technique.

In many ways, this hack began like any other. The cybercriminals sent their victims infected emails — a news clip or message that appeared to come from a colleague — as bait. When the bank employees clicked on the email, they inadvertently downloaded malicious code. That allowed the hackers to crawl across a bank’s network until they found employees who aministered the cash transfer systems or remotely connected A.T.M.s.

The attackers took great pains to learn each bank’s particular system, while they set up fake accounts at banks in the United States and China that could serve as the destination for transfers. Two people briefed on the investigation said that the accounts were set up at J.P. Morgan Chase and the Agricultural Bank of China. Neither bank returned requests for comment.

Kaspersky Lab was founded in 1997 and has become one of Russia’s most recognized high-tech exports, but its market share in the United States has been hampered by its origins. Its founder, Eugene Kaspersky, studied cryptography at a high school that was co-sponsored by the K.G.B. and Russia’s Defense Ministry, and he worked for the Russian military before starting his firm.

When the time came to cash in on their activities — a period investigators say ranged from two to four months — the criminals pursued multiple routes. In some cases, they used online banking systems to transfer money to their accounts. In other cases, they ordered the banks’ A.T.M.s to dispense cash to terminals where one of their associates would be waiting.

But the largest sums were stolen by hacking into a bank’s accounting systems and briefly manipulating account balances. Using the access gained by impersonating the banking officers, the criminals first would inflate a balance — for example, an account with $1,000 would be altered to show $10,000. Then $9,000 would be transferred outside the bank. The actual account holder would not suspect a problem, and it would take the bank some time to figure out what had happened.  

“We found that many banks only check the accounts every 10 hours or so,” Mr. Golovanov of Kaspersky Lab said. “So in the interim, you could change the numbers and transfer the money.”

The hackers’ success rate was impressive. One Kaspersky client lost $7.3 million through A.T.M. withdrawals alone, the firm says in its report. Another lost $10 million from the exploitation of its accounting system. In some cases, transfers were run through the system operated by the Society for Worldwide Interbank Financial Telecommunication, or Swift, which banks use to transfer funds across borders. It has long been a target for hackers — and long been monitored by intelligence agencies.

So the moral of the story is protect your endpoints, for they are your weakest link!

Source:

• http://www.nytimes.com/2015/02/15/world/bank-hackers-steal-millions-via-malware.html?_r=0

So “Once more unto the breach, dear friends, once more;”

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About Rick Ricker

An IT professional with over 22 years experience in Information Security, wireless broadband, network and Infrastructure design, development, and support.

For more information, contact Rick at (800) 399-6085 x502