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Thieves appear to have stolen the funds from University of Virginia after compromising a computer belonging to the University's Financial Controller. Malware intercepted the Online Banking Credentials for the University's Bank accounts and initiated a fraudulent
wire transfer for $996,000 to a Bank in China.
Whereas, because of a £10,000 per day limit on my UK Online Banking via BACS, when I was transferring £125,000 yesterday via CHAPS, RBS called up our dual Signatures on File, checked my Passport & Debit Card, and recorded me on CCTV. I was happy that they
had done their due diligences.
Times like this prove that automated chaos is just faster chaos. Why would the University of Virginia not have arranged for a limit on their Online Banking Account - say $100,000?
Crazy. Banks are supposedly desperate to hold onto capital funds, so you'd think they'd pass this up a notch and do some checks prior to transferring a million.
Also, if transferred 'in error' or in suspected fraud cases, don't banks have the ability to recall the transfer. Presumably it was noticed pretty quickly. I know if money is erroneously transferred to my lowly account in error, it is soon recalled. And
even if I have withdrawn it, the recall still happens and puts me in debt. And to withdraw the $1m from the receiving bank should attract a second set of checks. Taking just $5k out in the UK often requires photo ID and KYC. Something doesn't seem right
here - the University Bank should have had better safeguards.
available for hire
17 Aug 2007
This post is from a series of posts in the group:
A place to share stuff that isn't at all fintec related but is amusing, absurd or scary.