Bloomberg reports hackers are making up to $1 billion a year in transfers on accounts businesses have with small banks. Instead of recovering the stolen money in full, banks are blaming the customers for the problem because it was their computers that allowed the money to be transferred.
From Bloomberg:
Organized criminal gangs, operating mostly out of Eastern Europe, target small companies, school districts and local governments that maintain fat commercial bank accounts protected by rudimentary security measures at community or regional banks. The accounts typically aren’t covered by insurance as individual accounts are. ‘If everyone knew their money was at risk in small and medium-sized banks, they would move their accounts to JPMorgan Chase,’ said James Woodhill, a venture capitalist who is leading an effort to get smaller banks to upgrade anti-fraud security for their online banking programs.
(Photo credit: Flickr user RambergMediaImages)
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
