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An article relating to this blog post on Finextra:

Computer programmer gaoled for insider ATM fraud scam

A former computer programmer at Alabama-based Compass bank has been sentenced to 42 months in gaol after he stole a hard drive containing around one million customer records and used the data to creat...


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How did they obtain the PINs?

The important issue, in my mind, is how did the fraudsters obtain the ATM PIN codes.
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Comments: (1)

A Finextra member
A Finextra member 30 March, 2008, 14:05Be the first to give this comment the thumbs up 0 likes

One can only assume that it is another example of poor methodology in the design of the bank's transaction sytem. I would suggest you try and get a statement in writing from your own bank that their staff cannot either do the same or use some other method to defraud your account. Just don't hold your breath while you wait for an answer.

If he was a computer guy in the bank then it would have probably been easy to do. After all he obviously wasn't a rocket scientist because he was caught quickly, so this infers that it was easy.

Sensible methodology will prevent these insider frauds. Unfortunately insider threats loom very large in most businsses, financial or not. They can be prevented, but the bank requires the will to implement the solution. The risk can be 'measured' and doesn't justify the effort - that is until it happens. A bit like traders getting carried away and ruining the bank, odds are it won't happen, nevetheless it does.