Banks Blame Businesses When Hackers Empty Their Bank Accounts

August 18, 2011

“If every [business] knew their money was at risk [from online fraud] in small and medium-sized banks, they would move their accounts to JPMorgan Chase,” said James Woodhill, a venture capitalist who is leading an effort to get smaller banks to upgrade anti-fraud security for their online banking programs. “That’s because JPMorgan Chase is the only major U.S. bank that insures commercial deposits against the type of hacking that plagues smaller banks.

There is an excellent article in BusinessWeek titled Hackers Take $1 Billion a Year as Banks Blame Their Clients that is a must read piece. It provides a clear explanation of the insurance loophole that is wiping out businesses, school districts, churches, and local governments bank accounts, when and how cybercriminals strike; why small banks aren’t stepping  up,  why law enforcement is struggling to deal with  the issue; the role of malware in these exploits, and what led to the creation of the yourmoneyisnotsafeinthebank.org website.

Read it.

Linda


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