Cybercriminals Stole $45m in Global Bank Heist
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
U.S. federal prosecutors on Thursday charged eight cyber-criminals accused of stealing $45 million by hacking into a database of prepaid debit card, scrapping withdrawal limits and helping themselves from cash machines across 26 countries.
Prosecutors also highlighted the “surgical precision” of the hackers and the global nature of their crime network, adding that the entire heist unfolded “in a matter of hours”.
U.S. federal prosecutors on Thursday charged eight cyber-criminals accused of stealing $45 million by hacking into a database of prepaid debit card, scrapping withdrawal limits and helping themselves from cash machines across 26 countries.
Prosecutors also highlighted the “surgical precision” of the hackers and the global nature of their crime network, adding that the entire heist unfolded “in a matter of hours”.
Related Infographic: The Biggest Heists in Crime History
Related: Cyberattacks Bigger US Security Threat than Terrorism
Analysts say the case demonstrates the major threat that cyber crimes pose to banks around the world and highlights how sophisticated criminal gangs have become, particularly those manipulating the Internet.
In what is known as an “unlimited operation”, members of the scheme allegedly infiltrated credit card processors’ computer networks to steal data on prepaid debit cards. These cards are pre-loaded with funds rather than being linked to a bank account or a line of credit.
Breaking into the system, the hackers then eliminated withdrawal limits imposed by banks and distributed the debit card information to its street accomplices known as “cashers” around the world.
Cashers then loaded the stolen data onto magnetic strip cards, such as gift cards of hotel cardkeys, and used them to withdraw as much cash as they could for the organisation.
The first alleged raid took place at the Rakbank in the United Arab Emirates in December, when criminals conducted some 4,500 transactions worth $5 million across about 20 countries.
In the second attack, prosecutors say the group broke into the Bank of Muscat based in Oman in February. In the space of 10 hours, casher cells in 24 countries conducted some 36,000 transactions, withdrawing $40 million from ATMs.
Related: Cybercrimes Cost Consumers $110 Billion a Year: Study
Related Infographic: How Fast Are Cyber Crimes Growing?
Calling the group a “virtual criminal flash mob”, US attorney Loretta Lynch said criminals often laundered their proceeds by purchasing luxury goods, and sending a portion of the money back to the organisation’s leaders.
Authorities said they seized hundreds of thousands of dollars in cash and bank accounts, as well as two Rolex watches and a Mercedes SUV, from the defendants.
Calling the attack the largest of its kind, Lynch said:
[quote] The defendants and their co-conspirators participated in a massive 21st century bank heist that reached across the Internet and stretched around the globe. In the place of guns and masks, this cybercrime organisation used laptops and the internet. [/quote]
