January 2017 Issue

The 'Newsletter on Financial Fraud' from CustomerXPs is your monthly insight into the various new fraud types and methods used by fraudsters globally in the banking space.

This will help you stay abreast of all the latest happenings in the banking fraud space.

Man Masterminds $100 million Bank Fraud


A man was recently captured by American and Thai police for being a part of a global conspiracy to commit bank fraud to the tune of $100 million! He is said to have infiltrated the networks of 217 banks.

The Method:The primary method of attack by the man was through identity theft of unsuspecting bank customers and hacking into the customers accounts and siphon off their money.The man's chief tool was a nasty piece of malicious software - a criminal banking trojan program called SpyEye. Used in conjunction with phony Web pages, SpyEye was deposited on the computers of unwary visitors to those websites from December 2009 to September 2012, according to a report in the Nation, a Bangkok news website. After credentials were harvested, he could invade a bank account and drain it of all money, authorities allege. A single transaction could earn him $10 - $20 million.

The "tools of his trade," police officials claimed during a press conference, lay on a table in front of him: two laptop computers, a satellite phone, external hard drives, and other equipment.The fraudster is now under the custody of the Thailand Police Department and a joint investigation between Thai and American police would be undertaken in order to prove the charges leveled against him

Source: Alaska Dispatch

ID Theft Scam Run From Prison


Customers of Bank of America, Citibank and the former Washington Mutual Bank were taken for $8 million, after their accounts were compromised as part of an intricate identity theft and bank fraud scheme that was run for nearly six years from a California prison

The Method:

Authorities say members of the Armenian Power gang worked from behind bars with street gangs and bribed bank employees to steal personally identifiable information - including signatures, telephone numbers, prior addresses and property documents - about elderly account holders to impersonate them and take over their accounts. Defendants used the stolen information to change accountholder phone numbers and addresses in an effort to conceal their crime.

Those changes put control of accounts into the hands of criminals.Banks suffered losses to the tune of $8 million. The two ring leaders accused of organizing the scheme have been sentenced to 25 years each in federal prison, even while already serving time for other crimes.

Source: Bank Info Security

Multi-Billion Banking Fraud in Moscow


A case has been registered against a criminal group who annually transferred more than 30 billion rubles ($980.6 million) in violation of laws in Moscow.

The Method:

Allegedly illegal banking operations were committed using fly-by-night companies. A manager of a Moscow commercial bank and two unemployed individuals, who had no license, were previously reported to have made settlements and transferred funds via accounts of individuals and a number of legal entities.

In order to hold illegal operations, they used settlement accounts and banking details of 50 fly-by-night companies."The accounts were managed by using the system of remote access to the Client Bank account or via fake bank orders. It has been established that funds were moved via settlement accounts of companies opened by Congress-Bank, including abroad; cashed funds were issued through the bank's safe deposit boxes," the press release reads.

Source: Russian Legal Information Agency

Man Steals 6,000GBP in Identity Theft


A MAN stole the identity of five of his ex-lovers and fleeced them out of more than 6,000 GBP, a court heard.

Serial fraudster Wayne Fada gained personal details and birth certificates while in relationships with his unsuspecting partners and, when they broke up, used the information and documents to get access to their bank accounts and apply for loans.

The Method:

Before Fada went to the bank, he applied to Durham County Council for a birth certificate in the name of a former partner.He then went to the bank and produced the certificate and gained access to the man's current account, setting up a mandate for 250 GBP to be paid into his own account.On the same day, he went on to use the telephone banking system to transfer a further 600 GBP into his own account.

Similar process was followed by him for other accounts and he managed to take out a total of over 6000 GBP.

Magistrates sentenced him to 16 weeks in prison, suspended for 12 months, with 12 months' supervision.

Source: Shields Gazette

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