The Bankwatch

Tracking the consumer evolution of financial services

Hackers Zero In on Online Stock Accounts – washingtonpost.com

 Its official … online brokerage is the new target for the Eastern European crime gangs. 

Hackers have been breaking into customer accounts at large online brokerages in the United States and making unauthorized trades worth millions of dollars as part of a fast-growing new form of online fraud under investigation by federal authorities.

E-Trade Financial Corp., the nation’s fourth-largest online broker, said last week that “concerted rings” in Eastern Europe and Thailand caused their customers $18 million in losses in the third quarter alone

Source: Hackers Zero In on Online Stock Accounts – washingtonpost.com

The broker industry had been asleep at the wheel on this one.  Banks were being hit, and they sat back.  Banks have brought in two factor authentication, and while Banks are still being hit, the gangs have learned.  They have learned the technology, they have learned how to spell (early phishing emails were obvious because of bad spelling), and most important, they have learned that grabbing $1,000 from a bank account is small potatoes compared to account takeover which can bring them thousands.  They have taken that further to realise that account takeover at a brokerage is worth multiple thousands or millions.

 

Written by Colin Henderson

October 24, 2006 at 01:04

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