Cyber Theft Prompts Escrow Firm To Legally Charge Bank

An escrow firm in Springfield (USA) has taken legal action against BancorpSouth Bank on charges that it couldn't stop a theft of $440,000 that a hacker filched out of the firm's bank account. NewsLeader.com published this on December 26, 2010.

Understandably, European hackers with the help of one kind of malware program contaminated the PCs as well as captured username and password with which the escrow firm's trust account with BancorpSouth could be logged in.

The firm, named Choice Escrow encountered the attack recently when hackers apparently targeted numerous escrow companies as though via randomly picking targets from a list of escrow firms in any business directory. A number of other escrow companies, which received blows likewise, have decided to keep the breaches secret and not disclose them publicly primarily to avoid possible exploitation of the news by their rivals to scare alternatively drive away clients.

Vice-President Elaine Dodd of Oklahoma Bankers Association's fraud division stated that financial institutions were trying to get closer on security; however, they were as well apprehensive of embracing more than manageable liability that went with such incidences. Krebsonsecurity published this on November 23, 2010.

Dodd further stated that when he talked to some banks they said that although they were trying to ward off the incidences, much of the events actually happened because clients contracted computer virus infections.

Said computer security blogger Brian Krebs, companies could adopt certain fundamental measures towards safeguarding themselves. Krebsonsecurity published this.

Replying to an e-mail, Krebs wrote that it'd be better for businesses to conduct their banking transactions from isolated computers as far as possible, preferably PCs without Windows as the different malicious programs the attacks used were mostly effective on Windows.

According to him, in case it was essential to use Windows then a computer exclusively for logging into the accounts of any organization should be allotted where no other online activity like Web browsing, IM'ing or Facebook checking should be done that could risk the system with malware infection. Meanwhile, such an approach to isolate PCs didn't prove successful in case it was carried out occasionally, Krebs added.

Related article: Cyber Child abuser Sentenced To Imprisonment

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