Hacking syndicates threaten banking

[Dave Farber <dave () farber net>]

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From: Monty Solomon <monty () roscom com>


Hacking syndicates threaten banking

By DAN VERTON
NOVEMBER 04, 2002

The number of organized hacking syndicates targeting financial
institutions around the world is growing at a disturbingly fast rate.
And so is the number of banks willing to pay these high-tech
extortionists hush money to protect their reputations, according to a
security expert at The World Bank.

Cases in which banks, brokerage firms and other financial
institutions have quietly paid hacking syndicates extortion money are
"extremely widespread," said Tom Kellermann, senior data risk
management specialist at The World Bank in Washington. Kellermann,
who co-authored a study on the electronic security risks facing the
global financial community, presented the findings during an Oct. 29
online seminar sponsored by Cable & Wireless Internet Services Inc.
in Vienna, Va.

The 127-page study details the growing security challenges facing the
financial sector as a result of the industry's unprecedented
dependence on the public telecommunications system, rapid adoption of
wireless systems and outsourcing of operations to third parties.

And the growing dependency on Internet technologies that are linked
to sensitive back-end systems, such as customer databases and
real-time stock data, has made online extortion a major "safety and
soundness issue" for the financial markets, Kellermann said.

...

<http://www.computerworld.com/securitytopics/security/cybercrime/story/0,108
01,75584,00.html>


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