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Hackers Steal Half a Million Dollars Using Direct Deposit

We always say that the best defense against cyber-security threats is a little due diligence. If you watch out for warning signs, most major breaches are avoidable. That advice applies not only to individual PC users, but to businesses, as well, and to banks, most importantly. Unfortunately, just like regular users, many banks and businesses fail to carefully guard their systems.

Hackers used this lack of careful observation to their advantage when they withdrew $588,000 in one week from the account of a small, family-owned, construction company called Patco. According to the New York Times, the cash was withdrawn from an account with People's United Bank, or Ocean Bank of Delaware, that was reserved for payroll purposes. The hackers exploited the ACH (Automated Clearing House) Network, which is used for direct deposits, to make faulty payments to accounts, causing the bank to draw on Patco's line of credit to cover the $223,237 in overdrafts.

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Japan Installs Cell Phone Jammers Near ATMs to Prevent Fraud



If you're tired of being scammed at ATMs by kind, gentle-hearted con artists (and then forgetting it ever happened), you'll be stoked to know that Japan is looking out for you. Chiba Bank has installed phone signal jammers at four unnamed ATMs at bank branches in the Tokyo region, and while it has gone down as the first institution to go to such lengths, we highly doubt it'll be the last. It's not entirely clear what exactly the criminals were able to convince people to do via mobile, but it's probably something like "psst... get me out some cheddar and meet around back." Not that we have any experience in the field or anything...

[Via textually]

Computers

Man's Offending Password Changed By Humorless Bank


Calling the British stuffy may be a bit of stereotyping, but the term certainly applies to a Lloyds TSB employee who changed a customer's password because it made fun of the bank. The customer had chosen "Lloyds is pants" -- translation: Lloyds is crap -- after a dispute with the bank, and found later that he couldn't access his account with it.

Steve Jetley used that password for his telephone banking account, but when he called up one day, the employee said the code didn't match what was in the system. It turned out that someone changed the password to "no it's not," so Jetley tried changing it back to his original phrase. The bank deemed it inappropriate, so he tried "Lloyds is rubbish," and then "Barclays is better," a reference to a rival business. They denied those too, saying it had to be one word, so he tried "censorship." They rejected that, saying it couldn't be more than six letters. Apparently, they haven't read up on safer passwords.

Lloyds said the staffer in question was fired and that in most cases, employees cannot see a customer's password. They claim that in this instance, the account is a business account with several people accessing it, so their advisors can see it. Unfortunately, Jetley is still trying to find a suitable password. We suggest he choose another bank. [From: BBC via Techdirt]

Computers

Line Extends Around the Block For ATM That Pays Double

ATM pays double


If a bank's automatic teller machine was malfunctioning and spitting out extra cash, what would you do? Call the bank and let them know of the error, or just hurry up and get in line? According to the Daily Mail, dozens of Brits chose the latter, queuing up outside a local convenience store when it was discovered that the ATM machine on the curb was paying out twice what people had requested.

Usually £300 (about $600) is the limit a British ATM machine will pay out, but this one was happy to pay out up to £600 all the while only debiting half that against the users' accounts. As word of the generous ATM spread, the line lengthened until the machine, at last completely spent, stopped giving up the goods.

You might think that these users will surely see an extra withdrawal applied to their accounts later to make up for the discrepancy, but there's actually a chance these folks may get off without paying extra, all because the banks may just decide that it's not worth the hassle to track down the offenders.

Here's to corporate efficiency!

From The Daily Mail

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Computers

Wells Fargo Launching "Virtual" Safe Deposit Boxes Online

Wells Fargo Launching vSafe Digital Safe Deposit Box

Wells Fargo bank is prepping to launch a new service called vSafe, which will essentially act as a "virtual" (i.e. non-physical) digital safe deposit box. Instead of storing heirlooms, cash, or jewelery, the "virtual" safe is designed to store digital records or copies of records, such as birth certificates or wills.

Wells Fargo will be facing an uphill battle, though. The bank plans to charge $4.95 a month for 1-gigabyte (GB) of storage, $9.95 for 3-gigabytes, and $14.95 for 6-gigabytes. Though the bank will extend the same encryption and security measures it uses for it online banking for vSafe -- translation: guaranteed secure connections that keep you safe from hackers, and powerful encryption that scrambles any data stored or entered on the site -- it isn't giving too many other details on why its service is better than the already copious amount of storage offered for free by the likes of Microsoft and AOL.

Wells Fargo is hoping that its long history and first to market status in the new digital safe deposit box field will bring it a new source of revenue. However, we don't see a very large market for the new service. Free storage or otherwise, online storage ultimately isn't all that secure, even behind a bank's security system.

From Newsvine

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Computers

Deposit Checks From Home -- Coming Soon

CheckFree Remote Deposit Capture

You soon may be able to deposit checks from home just by scanning them into your computer. An online banking service provider called CheckFree is introducing a technology that allows consumers to scan and transmit check images that is similar to what businesses have been using for some time. The system is called Remote Deposit Capture and all a consumer needs is a scanner, computer, and Internet connection to utilize the system.

CheckFree's services are already being used by the top 150 banks in the United States, so it's just a matter of them tailoring the technology to their customers' needs, according the to the company.

To set it up for home use, a bank would integrate the technology into its existing online banking portal. Consumers would log in, enter deposit information, and then scan a check. The image transfer is encrypted to protect your information.

CheckFree claims its technology will help banks cut down on ATM fraud, such as when consumers insert empty envelopes into ATMs after claiming a dollar value for checks or cash inside.

We just like the idea of not having to touch those ATM buttons, which we recently learned are disgusting.

From The Honolulu Advertiser/AP.


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Computers

Children's Toy Bank Uses ATM Cards and Touch Screen

Children's ATM Toy Spits Out Real Cash
If you were worried that your child wasn't being trained to be a good economic citizen, then check out this toy to make sure he or she grows up learning the value of plastic. The Children's Touch Screen ATM Bank comes with a card and a PIN for your tyke to manage an account of up to $999.99. The bank accepts bills of all kinds and coins.

Some of you probably hope that this little gizmo will teach your kid the value of a dollar. It's more likely he or she will just learn that there's a machine that gives them money anytime they put their card in it. We're waiting for "Baby's First Massive Credit Card Debt Simulator" to hit the market.

From Shiny Shiny

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