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Karl Wabst

Security Fix - Data Breach Highlights Role Of 'Money Mules' - 0 views

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    On Friday, Brunswick, Maine-based heating and hardware firm Downeast Energy & Building Supply sent a letter notifying at least 850 customers that the company had suffered a data breach. Downeast sent the notice after discovering that hackers had broken in and stolen more than $200,000 from the company's online bank account. The attack on Downeast Energy bears all the hallmarks of online thieves who have stolen millions from dozens of other businesses, schools and counties over the past several months. In every case, the thieves appeared more interested in quick cash than in pilfering their victims' customer databases. Nevertheless, the intrusions highlight an additional cost for victims of this type of crime: complying with state data breach notification laws. "This is something new to us, fortunately, but we have responsibilities under Maine statute to report these things to our customers and employees," said the company's president, John Peters, in an interview with Security Fix. At least 44 other states and the District of Columbia have similar data breach notification laws. Sometime prior to September, attackers planted keystroke logging malware on Downeast's computer systems, and stole the credentials the company uses to manage its bank accounts online. Then, on or around Sept. 2, the hackers used that access to initiate a series of sub-$10,000 money transfers out of the company's account to at least 20 individuals around the United States who had no prior business with Downeast Energy. This type of crime is impossible without the cooperation of so-called "money mules," willing or unwitting individuals typically hired via Internet job search Web sites to act as "local agents" or "financial agents" responsible for moving money on behalf of a generic-sounding international corporation, legal experts say.The mules are then instructed to withdraw the cash and wire it via Western Union or Moneygram to fraud gangs overseas, typically in Eastern Europe.
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