The Herald Bulletin

Morning Update

Nation & World

May 10, 2013

Feds in NYC: Hackers stole $45M in ATM card breach

NEW YORK —  A worldwide gang of criminals stole $45 million in a matter of hours by hacking their way into a database of prepaid debit cards and then draining cash machines around the globe, federal prosecutors said Thursday — and outmoded U.S. card technology may be partly to blame.

Seven people are under arrest in the U.S. in connection with the case, which prosecutors said involved thousands of thefts from ATMs using bogus magnetic swipe cards carrying information from Middle Eastern banks. The fraudsters moved with astounding speed to loot financial institutions around the world, working in cells including one in New York, Brooklyn U.S. Attorney Loretta Lynch said.

She called it "a massive 21st-century bank heist" carried out by brazen thieves.

One of the suspects was caught on surveillance cameras, his backpack increasingly loaded down with cash, authorities said. Others took photos of themselves with giant wads of bills as they made their way up and down Manhattan.

Here's how it worked:

Hackers got into bank databases, eliminated withdrawal limits on pre-paid debit cards and created access codes. Others loaded that data onto any plastic card with a magnetic stripe — an old hotel key card or an expired credit card worked fine as long as it carried the account data and correct access codes.

A network of operatives then fanned out to rapidly withdraw money in multiple cities, authorities said. The cells would take a cut of the money, then launder it through expensive purchases or ship it wholesale to the global ringleaders. Lynch didn't say where they were located.

It appears no individuals lost money. The thieves plundered funds held by the banks that back up prepaid credit cards, not individual or business accounts, Lynch said.

She called it a "virtual criminal flash mob," and a security analyst said it was the biggest ATM fraud case she had heard of.

Text Only
Nation & World
  • news_horselesscarriage.jpg Proposed car to replace NYC horse carriages shown

    An electric car that proponents hope will replace horse-drawn carriages in New York City was presented Thursday at the New York International Auto Show, as critics expressed their distaste for the idea.

    April 18, 2014 1 Photo

  • news_homesickforprison.jpg Man said to be homesick for prison gets 3½ years

    An ex-con who spent most of his adult life behind bars on Thursday got what he said he wanted for robbing a suburban Chicago bank. The 74-year-old gets to go back to the place he called home — prison.

    April 17, 2014 1 Photo

  • Gay Marriage Utah [Duplicate] Judge asks pointed questions in gay marriage case

    A judge in Colorado who will play a pivotal role deciding whether gays should be allowed to wed in the United States asked pointed questions Thursday about whether Oklahoma can legally ban the unions.

    April 17, 2014 1 Photo

  • news_obamalocalschools.jpg Obama: 8 million signed up for health care

    Eight million people have signed up for health care through new insurance exchanges and the proportion of younger applicants has increased, President Barack Obama said Thursday.

    April 17, 2014 1 Photo

  • 0107 Super WAL-MART 1 Wal-Mart jumps into the money transfer biz, loudly

    The world's largest retailer introduced a new money transfer service Thursday that it says will cut fees for its low-income customers by up to 50 percent compared with similar services elsewhere.

    April 17, 2014 1 Photo

  • news_ukraineprotests.jpg Deal reached on calming Ukraine tensions

    Top diplomats from the United States, European Union, Russia and Ukraine reached agreement after marathon talks Thursday on immediate steps to ease the crisis in Ukraine.

    April 17, 2014 1 Photo

  • news_target.jpg Cyber cops: Target hackers may take years to find

    Secret Service investigators say they are close to gaining a full understanding of the methods hackers used to breach Target's computer systems last December.

    April 17, 2014 1 Photo

  • Evacuation came too late for many on sinking ferry

     An immediate evacuation order was not issued for the ferry that sank off South Korea's southern coast, likely with scores of people trapped inside, because officers on the bridge were trying to stabilize the vessel after it started to list amid confusion and chaos, a crew member said Thursday.

    April 17, 2014

  • 3 protesters killed in attack on Ukrainian base

    The turmoil in Ukraine dominated the European landscape Thursday, as three protesters were killed in a clash in southern Ukraine, high-level talks were held in Geneva and Vladimir Putin weighed in on his neighbor's future for hours from Moscow.

    April 17, 2014

  • news_marathonsecurity.jpg Boston Marathon organizers confident of safe race

    The arrest of a man with a rice cooker in his backpack near the Boston Marathon finish line led police to step up patrols Wednesday, while organizers sought to assure the city and runners of a safe race next week.

    April 17, 2014 1 Photo