Cyber Crooks Breach ATMs, Steal Millions
A story that has been unfolding since last year is finally drawing to a close with the guilty plea of a 28 year old man who has admitted to using hacked PIN numbers to loot Citibank ATMs. Aleksandar Aleksiev was arrested last May when a stakeout set to catch him withdrawing cash at a Citibank branch proved successful.
Prime Time Drama?
Alekseev is the tenth person charged on what proved to be an offense with all the earmarks of a made for TV series – a Russian mastermind, a Ukrainian crime ring, a fake marriage and a giant corporation’s cover up. Supporting cast included additional young co-conspirators used as cash mules, the FBI, and even the Secret Service!
In May 2007, a unknown hacker apparently compromised a server that controlled Citibank branded ATMs at run by Cardtronics at Seven Elevens across the country, acquiring hundreds of card numbers and PINs. A small army of cashers withdrew millions of dollars over the months that followed, sending 70% of the take back to Russia.
The ring started to collapse when a few conspirators were pulled over with a mag stripe writer and blank cards in their car. Numerous people were arrested on charges ranging from access device fraud, bank fraud, conspiracy, money laundering, obstruction of justice, passport fraud and – in one case fit for the tabloids – one charge of gaining residency status in the United States with a sham marriage.
The Cover Up
Citibank supposedly knew about the breach, but denied it and kept accounts open for the FBI to track withdrawals, citing that if they were not holding customers liable for the fraudulent withdrawals that there should be no problems.
This has bothered some customers who think they should have been informed of the breach when Citibank abruptly cut withdrawal limits in half with no notice last October. Despite court documents, Citibank still denies that they were breached.
Protect Your Access Codes, Question Irregularities
If unexplained withdrawals show up on bank statements, even if they are immediately corrected, checking into it might be a good plan. Changing your pin on a regular basis can also help protect you from one month to the next, as the information hackers can get on you will be outdated.
