FBI Probes $Major$ Hack at Citibank

[Jeffersons Ghost]

THE WALL STREET JOURNAL
DECEMBER 22, 2009

Russian Cyber Gang Suspected of Stealing Tens of Millions; Bank Denies Breach

By SIOBHAN GORMAN and EVAN PEREZ

The Federal Bureau of Investigation is probing a computer-security breach targeting Citigroup Inc. that resulted in a theft of tens of millions of dollars by computer hackers who appear linked to a Russian cyber gang, according to government officials.

The attack took aim at Citigroup's Citibank subsidiary, which includes its North American retail bank and other businesses. It couldn't be learned whether the thieves gained access to Citibank's systems directly or through third parties.

The attack underscores the blurring of lines between criminal and national-security threats in cyber space. Hackers also assaulted two other entities, at least one of them a U.S. government agency, said people familiar with the attack on Citibank.

http://online.wsj.com/article/SB126145280820801177.html

[KharmaTrain]

1. Here's A Problem I Have With This Story...

In the early 80s I knew an early computer whiz who was able to hack into the puters at the Federal Reserve...watch the money get transfered from one branch to another. For kicks he could re-route the money...but in the end, it was just numbers on his screen. I see the same thing here. Someone could have found their way into their system, but if they were to move money out, where would they put it? It's easily traced and the bank taking the transfer would have to be either owned or controlled by these thieves...and then try to spend or fence it. That's moving through a lot of mine fields. Again, hacking into a system is just moving zeros and ones...not real currency and thus any "breach" is with "funny money"...a big reason why we're on an electronic system. If there's any fraud, its detected quickly and can be corrected. The best these hackers can do is make a bunch of Citbank IT people's lives hell.

[deadmessengers]

2. Here's one way:

ID Fraud comes into play: using a stolen ID, they open a new account at the bank, or use a cloned debit/credit card linked to an existing compromised bank account. They then use the debit card to buy gift cards at major retailers - as fast as they can before the account is shut down. Those gift cards are bearer instruments, and are currency equivalent.

No, they don't get the full amount this way, but there are ways for them to partially cash out.

[Jeffersons Ghost]

3. this article details the theft:

DECCAN HERALD

FBI probes computer security breach targeting Citigroup
Washington, Dec 22 (PTI):

FBI is probing a computer- security breach targeting Citibank that resulted in a theft of tens of millions of dollars by hackers who appear linked to a Russian cyber gang, according to a media report.

The threat was initially detected by US investigators who saw suspicious traffic coming from Internet addresses that had been used by the Russian Business Network, a Russian gang that has sold hacking tools and software for accessing US government systems.
The group went silent two years ago, but security experts say its alumni have re-emerged in smaller attack groups, the report said. "Security officials worry that, beyond stealing money, hackers could try to manipulate or destroy data, wreaking havoc on the banking system. When intruders get into one bank, officials say, they may be able to blaze a trail into others," the report said.

The daily said one Robert Blanchard, co-owner of a lighting company in Mount Vernon, New York said that someone hacked into his Citibank account and stole over USD 1 million.
http://www.deccanherald.com/content/42647/fbi-probes-computer-security-breach.html