Search
 
Best Practices

Beware Online Banking Thieves

Banks boost anti-fraud services as attacks increase.

By John Hintze | Updated on January 01, 2011

An executive at a 120-employee company receives a call at 10:50 a.m. from a representative at his bank, who asks him if the firm has made any recent wire transfers. The executive says no. In fact, 47 transfers have been made over the previous three hours, to accounts in far-flung places such as Russia, Scotland, Finland and China. The executive tells the bank rep not to honor any additional transfer requests, but over the next three hours, 38 more fraudulent wires are sent from the company’s accounts, resulting in a loss of $560,000 for the company. This is just one instance of the growing trend of online fraud perpetrated against business bank accounts. In the case above, an employee of Experi-Metal Inc. (EMI), a manufacturer of specialty metal products in Sterling Heights, Mich., opened an e-mail that appeared to be from Comerica, its bank for over a decade. The e-mail said Comerica needed to perform maintenance work on its banking software and instructed EMI to log in to a linked Web site.

The employee logged in and provided the requested information. Alas, that information was obtained by fraudsters–most likely captured by so-called malware surreptitiously planted in the computer’s operating system. The fraudsters “immediately began sending wire transfers out of EMI’s bank accounts with Comerica, sending the funds to various foreign and domestic accounts,” according to the complaint EMI filed in November 2009.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

Investments Shift away from Bank Deposits

Investments Shift away from Bank Deposits

Tom Hunt |

The 2023 AFP Liquidity Survey found that treasurers are reducing bank deposits and moving investments toward more secure vehicles, reflecting the U.S. economic climate of 2022 and the bank failures of 2023.

Preparing for FedNow Instant Payments

Preparing for FedNow Instant Payments

T&R Staff |

Part 2 of 2: Now that FedNow is live, what should companies be doing to prepare to send and/or receive payments via the service?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.