AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Netspend money adder hack12/8/2022 ![]() US banks using payment processors must have a contractual agreement that states the payment processor is meeting the same security standards the bank does. That has raised concerns about the need for better security around prepaid cards, and the card processing companies that service them.įor more than a decade, banks have been required by US law to ensure their electronic systems and those used by their outside contractors meet certain safety requirement. Prepaid cards gets you past these two issues and as a result are extremely popular." "With credit cards you need to be credit worthy and with debit cards you need a bank account. "With cash payments slowing and an increase in mobile payment and online commerce, the importance of these cards is only going to increase," Valentin said. "Of all the types of cards that are there, prepaid cards is the fastest growing category," said Scott Valentin, analyst with FBR Capital Markets & Co. While the $45 million swindle is one of the largest ever, security experts say banks deal with similar, albeit smaller, thefts regularly - they are just rarely disclosed.īy 2013, the amount of money that was placed onto reloadable prepaid cards reached about $201.9 billion from $28.6 billion in 2009, according to a report published by Mercator Advisory Group. "The banks are using state-of-the art defenses, but the more sophisticated actors are able to breach their networks," said Shawn Henry, the former head of cyber crime investigations at the FBI, now president of professional services at security firm CrowdStrike. Credit cards are attached to individuals whose spending habits over time give banks and credit card companies clear patterns they can use when trying to identify unusual or illicit activity.Ī thief moving from ATM to ATM with a personal credit card would likely quickly raise alarms, because his or her behavior would look out of place compared to the credit card user's normal activity. In the case of Bank of Muscat, $40 million was stolen in just over 10 hours.Įxperts said the use of prepaid debit cards, instead of credit cards, was not accidental. The global scope and speed of the theft was unprecedented, cyber investigators said. The criminal ring's operatives then fanned out around the world and used fraudulent prepaid cards to withdraw money from thousands of ATMs. Once inside the computer networks, they increased the available balance and withdrawal limits on prepaid MasterCard debit cards issued by Bank of Muscat of Oman and National Bank of Ras Al Khaimah PSC of the United Arab Emirates. In a globally coordinated campaign, hackers broke into two unidentified payment processing companies that handled the prepaid debit cards for two Middle Eastern banks, US prosecutors said on Thursday. Petro was speaking generally and said he did not have direct knowledge of the $45 million heist. "The vulnerability stems from third-party processors, who may not have the same level of security systems that banks are able to have," he added. The bad guys know the system and they have been able to exploit it," said Joe Petro, a managing director at Promontory Financial Group, who worked for 20 years as the head of fraud prevention and investigations for Citigroup Inc. Raising a withdrawal limit on a prepaid card involves hacking into a system at a third-party payment processor, a company that is generally smaller than a bank and, if based outside the United States, potentially subject to looser cyber security standards.
0 Comments
Read More
Leave a Reply. |