Bank slammed after hackers steal $378,000 from Poughkeepsie
08 February 2010 | 9558 views | 0
Officials from Poughkeepsie have criticised TD Bank after hackers broke into the US town's account, stole $378,000 and transferred it to the Ukraine.
On 11 and 12 January, hackers made several attempts to access the town's bank account with TD. They successfully made four transfers worth $378,000 to accounts at banks in the Ukraine although $95,000 has since been recovered.
The town says that once the transactions were discovered on 13 January, the bank was immediately notified of the activity and the police were called in to investigate.
To prevent any other accounts from being compromised the town changed all the account numbers and the computers involved were removed and handed over to the Secret Service.
However, officials have slammed TD Bank for its conduct, saying in a statement: "We find it unacceptable that movement, or attempted movement; of money from a Town account to an account in Eastern Europe did not immediately raise a 'red flag' with the bank, was not questioned by anyone at the bank, but was simply processed."
The statement, read by supervisor Patricia Myers, continues: "We are equally disappointed that in the three weeks since the thefts were detected, no representative from TD Bank has come to Town Hall to speak with us about the situation."
The FBI recently warned of a "significant increase" in fraud involving the exploitation of valid online banking credentials belonging to small and medium businesses, municipal governments, and school districts.