“Hackers Siphoned $70 Million”

By Amanda Kelsten

In today’s world, most new innovations in Information Technology are taken to be positive in nature; they often help make our lives easier and more efficient. However, such ease and efficiency in the wrong hands can also lead to trouble. An example of the more negative effects of IT includes a hacking ring that used fake names to open up bank accounts and move stolen money from country to country. The thieves managed to steal $70 million from “small businesses, municipalities, and churches” by targeting the accounts of the companies themselves as opposed to individuals (Perez). The group managed to access the accounts of these companies by using a new program called Zeus software- which is sold through the black market worldwide and can be used for hacking into bank accounts (Perez). While this is a frightening thought in itself, the fact that this software is becoming even more intelligent and adaptive as security on accounts increases is similar to the immunity of antibiotics in the world of medicine. It seems as if the smarter the “good guys,” or security, becomes the stronger the enemy can get as well. This is quite an astounding negative side to the advancements of technology in recent years, because while the FBI’s technological advancements to catch criminals improve, so do programs that criminals can use to access private information. Even more alarming, not all of the accounts affected were in one geographical location. Due to the ease of accessing information around the globe through IT, victims were not only in the US but were also “in the U.K., the Netherlands, and Mexico” (Perez). This is disturbing news, since no one appears to be safe from identity theft, fraud, or bank robbing regardless of location. Crime rings will continue to use up-to-date Zeus malware even as other criminals are caught, which means that while $70 million worth of theft has been identified, there exists no way to predict who or what will be affected next.

As online hackers receive publicity for their potential to amass millions of stolen dollars, consumers do not seem to care all that much. In a recent article from PNT Marketing Services, online banking is the preferred method by most bank customers today (“Online Banking”). Not only do most people seem to be unconcerned with fraud and theft, but online bankers “see it as quick, convenient, accurate and safe” (“Online Banking”). Most of the younger people surveyed view online banking as a safe way to do their banking, since it appears to accompany the technology of their Facebook profiles and their Blackberry phones. In part, younger people should not have as much to fear, since as technology improves so does security. In fact, recent studies conclude that online banking fraud is down over 30% (in the UK, for example) from last year alone and that credit card fraud is decreasing as well due to improvements in security and fraud detection methods (Saran). It can appear to be confusing since some statistics reveal that online fraud is on a rapid decline, whereas the hackers who commit that fraud are becoming more sophisticated and stealing large amounts of money throughout the world. This conflicting information gives the modern-day consumer a lot to consider. While recent technological advancements have made life easier and in some ways “better,” there are some cons that can potentially outweigh the benefits of such improvements. Hacking is a concern for those who place personal information online. While it may not be advisable to avoid technology forever, consumers should be careful as to what information they place online. Online banking is an incredibly convenient method to check available funds, make deposits, pay bills, and look over recent transactions. Nevertheless, it must be acknowledged that these benefits are accompanied with certain risks as well.

The video below is a news report regarding flaws in online banking systems and risks people may be taking in completing their banking online.

Sources:

"Online Banking Jumps among Customer Preferences." PNT Marketing Services. 04 Oct. 2010. Web. 06 Oct. 2010. _banking_jumps_among_customer_preferences-800098198.html>.

Perez, Evan. "Hackers Siphoned $70 Million." The Wall Street Journal Online. 02 Oct. 2010. Web. 06 Oct. 2010. 5526393770024452.html>.

Saran, Cliff. "Credit Card Fraud Drops Thanks to Improved Online Detection." ComputerWeekly.com. 06 Oct. 2010. Web. 06 Oct. 2010. .com/Articles/2010/10/06/243195/Credit-card-fraud-drops-thanks-to-improved-online- detection.htm>.