Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Coordinated Attack Hits N.Y. City ATMs With $45M Breach
NEW YORK (5/13/13)--An alleged international gang of cybercriminals stole $45 million by hacking their way into a database of prepaid debit cards and then draining ATMs worldwide, federal prosecutors said Thursday.

Eight members of the alleged gang's New York City crew stole about $2.4 million from about 3,000 ATMs in the metropolitan area during February, according to a four-count conspiracy and money-laundering indictment unsealed  in Brooklyn (USA Today May 10).

After reaching out to its member credit unions in the New York City area Friday, the Credit Union Association of New York could not identify any credit unions with ATMs that had been compromised in the attack.

"New York City has a ton small credit unions," said Ron McLean, CUANY senior vice president of support services. "Most of them do not have a lot of ATMs."

The ATMs of Municipal FCU, New York, the largest state-chartered credit union in New York City, do not appear to have been compromised in the attack, Michael Mattone, the credit union's assistant vice president of public relations and corporate communications told News Now.

"We have not been contacted by authorities," Mattone said. "Our security department is double checking to be sure that none of our ATMs were used in the attacks."

The cybercriminals would hack into the computer systems of credit card processors, steal information involving prepaid debit card accounts and eliminate the withdrawal limits and balances of those accounts. Organized crime cells would then withdraw unlimited amounts of cash from ATMs before the operations would be shut down.

Thieves carried out two lucrative unlimited operations between October 2012 and last month, the indictment said. In the first attack, hackers working with the gang on Dec. 22 allegedly targeted a credit card processor that handled prepaid MasterCard debit cards issued by the National Bank of Ras Al-Khaimah, a United Arab Emirates bank also known as Rakbank.

The second unlimited operation allegedly took place between the afternoon of Feb. 19 and the pre-dawn hours of the following day. Hackers allegedly compromised computers of the processor of prepaid debit cards for the Bank of Muscat, located in Oman. In about 10 hours, gang members in 24 countries conducted about 36,000 ATM transactions, withdrawing an rougly $40 million, the indictment said. The withdrawals included $2.4 million by the alleged New York crew.

News Now LiveWire
A recent report from @TransUnion says consumers born 1981 or later made up 27% of total auto-loan originations in 2014, up 16% from 2009.
18 hours ago
.@CUNA says new House bill is "further evidence" of lawmakers' interest in how @TheNCUA uses its funds from CUs. See News Now Monday.
1 day ago
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
13 hours ago
House Financial Services Com. to hold March 3 hearing to receive the semi-annual report of @CFPB Director Richard Cordray.
14 hours ago
Rep. Jeff Miller (R-Fla.) re-introduced bill to ease veterans' access to loans for #smallbusiness purposes from a #creditunion (HR 1133)
15 hours ago