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Computer Frauds Lead to $25 Million Loss in Q3 2009

According to the U.S. FDIC (Federal Deposit Insurance Corporation), which recently conducted a research, computer frauds against enterprises of small sizes across the country caused a total loss of $25 million to businesses during July to September 2009, i.e. Q3-2009.

Even worse, during the said period, i.e. Q3 2009, Internet banking fraud related to funds transfer electronically increased to more than $120 Million, the FDIC estimates in its new research.

According to David Nelson, an examination specialist with the Cyber Fraud and Financial Crimes Section of FDIC, Internet banking fraud that typically relates to electronic funds transfer has constantly increased since 2007. This is because malicious programs keep on becoming sophisticated and commonplace, as per the news published by lawyerandsettelments.com on March 14, 2010.

The specialist further says that the attackers commonly take aim at small enterprises and fun accounts that have less strict security controls compared to a big organization.

Consequently, when cyber-criminals launch malware attacks, small businesses incur much greater losses in comparison with the big ones.

Alongside Nelson, financial analyst Avivah Litan of security firm Gartner also remarked on FDIC's discoveries and believes that the Corporation's estimates are realistic. However, according to Ms. Litan, FDIC's outcomes exemplify a problem which is causing too much expense for businesses, according to the news release by computerworld.com during the second week of March 2010.

The analyst added that attacks which planted Zeus, the information stealing bot, on users' computers have surged so far this year. This clearly indicates that losses from those attacks might be still more during the current year (2010).

Significantly, experts stated that the Zeus Trojan is potential enough to thwart the two-factor authentication, thus imposing a serious danger to banks and businesses.

Nelson suggests that to fight with the growing incidences of fraudulent electronic funds transfer, financial institutions must coordinate with Internet Security Protocols as well as others towards disabling the existing botnets. Moreover, these institutions must utilize their software programs for anti-money laundering purposes for the detection of unexpected operations on the accounts of their customers, as reported by searchfinancialsecurity.techtarget.com during the second week of March 2010.

Related article: Computer Virus Writers Adopt New Strategy

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