Blog article
See all stories »

University loses nearly 1 million dollars to malware

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?   

5226

Comments: (1)

John Dring
John Dring - Intel Network Services - Swindon 03 September, 2010, 11:43Be the first to give this comment the thumbs up 0 likes

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 And even if I have withdrawn it, the recall still happens and puts me in debt.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.

Keith Appleyard

Keith Appleyard

IT Consultant

available for hire

Member since

17 Aug 2007

Location

Bromley

Blog posts

60

Comments

108

More from Keith

This post is from a series of posts in the group:

Whatever...

A place to share stuff that isn't at all fintec related but is amusing, absurd or scary.


See all