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$9 million ATM heist: the dark side of international collaboration

By | February 7, 2009, 8:55am PST

Summary: ” The New York Fox News video report above by John Seutzman describes a well coordinated attack on 130 automatic teller machines (ATM’s) in 49 cities worldwide within 30 mins, which jeopardized sensitive information and netted over $9 million. Shortly after midnight Eastern Time on November 8 2008, the FBI believes that dozens of people used hacked [...]

The New York Fox News video report above by John Seutzman describes a well coordinated attack on 130 automatic teller machines (ATM’s) in 49 cities worldwide within 30 mins, which jeopardized sensitive information and netted over $9 million.

Shortly after midnight Eastern Time on November 8 2008, the FBI believes that dozens of people used hacked RBS WorldPay payroll cards (which are similar to debit cards) in a coordinated attack on ATM machines around the world.

Steve Lazarus of the Atlanta FBI said the withdrawals were carried out by a collaborating group of so-called “cashers,” who used fabricated cards to pull money out of previously compromised accounts. RBS said that the thieves might also have successfully accessed the US Social Security numbers of 1.1 million customers.

The FBI’s Lazarus: “This was a well-coordinated attack by some pretty computer and network savvy people, even at the lowest levels of cashers taking cloned cards to ATMs.”

The criminals centrally hacked fake payroll deposits to repeatedly inflate the amount of available cash on each card, money that was then drained at ATMs over and over again.

Google Latitude

Google launched their new location-tracking service Latitude this week. Using the GPS hardware found in smart phones (such as Google Android phones, BlackBerry and Windows Mobile handsets) to identify your geological position on a map and share it with people you have control over defining. Along with existing services such as brightkite and Yahoo’s fire eagle these geo locator services have some utility.

Yahoo proposes you use fireeagle to ‘have fun on the web”

* Show your location on your blog
* Share it with your friends
* Discover cool stuff around you

You can ‘choose what you share’

* You control your data
* You choose who to share with
* You choose how much to share

What happens if suddenly you can’t choose how much you’re sharing though, because it got hacked?

Technology enthusiasts always see innovation and openness as a force for good, but the dark side is that there is a large international army of coordinated criminals constantly seeking to exploit weaknesses and opportunities with new technologies.

In the physical world we learn to be wary of our surroundings - we haven’t learnt yet to be guarded with how to share gps position location, or how easily it can be compromised on a mass scale, because it is so new.

Law enforcement in many countries use existing gps technology in cell phones to track individuals without their knowledge and can use some phones as bugging devices even if they are turned off.

Unfortunately anything the authorities can do criminals can as well in many cases. The well coordinated collaboration between the various ATM attack army members gives pause for thought about how easy it is to mobilize a techno team of crooks.

The thought of one using your hacked geo location information isn’t a pleasant one.

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Topics

Oliver Marks provides seasoned independent consulting guidance through the Sovos Group to companies on the effective planning of 'Enterprise 2.0' strategy, tactics, technology decisions and roll out.

Disclosure

Oliver Marks

Oliver Marks professional work is defined by an objective viewpoint of the broad spectrum of vendors and options available to his clients and readers of this blog. Oliver provides an impartial perspective of vendors and is focused on contractual affiliation with clients in order to select appropriate solutions. As such he has no business relationships with the companies or services he recommends. Oliver is a founding partner of The Sovos Group. The opinions, concepts and views put forward in this blog are solely those of Oliver Marks.

Biography

Oliver Marks

Oliver Marks is a founding partner at SovosGroup.com which provides seasoned independent consulting guidance to companies on the effective planning of 'Enterprise 2.0' strategy, tactics, technology decisions and roll out.

With extensive senior management practical experience in international enterprise collaboration, Oliver previously managed the Sony PlayStation 'WorldWide Studios' collaboration extranet, and has worked with the American Management Association, Sun, Docent/SumTotal Systems, Harvard Business School and McKinsey & Company on major initiatives around knowledge transfer and change management.

Oliver has dual US/UK citizenship and has worked on Asian, European and American global enterprise collaboration, and spoken at various conferences. He is based in San Francisco.

His personal blog is at www.olivermarks.com.
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Fish, the money maybe adds up....
NLevy 13th Feb 2009
Looking around, in half an hour, I could maybe get cash at 3 to 5 ATMs - but 2 or 3 is more reasonable. Then I could take the max out of 2 or 3, up to maybe 5 different cards at a go, but more likely use only up to 3 per time standing at one ATM. The only way I can get into a $9 million range - is if the maximums are higher than the standard $300 - and more like a $1,000. The ATMS themselves should have been reporting unusual behavior, maybe the crooks thought it would within 1/2 an hour. And it seems, getting into other things and taking away information was probably more important than the cash - since most of that cash is probably not going back to the original mastermind. (Who will sit above all this while the FBI goes after a series of poor communities with a sudden windfall and sheepish looks on their faces for falling for "this card scam".)

The bank is at fault for providing services beyond what they can secure.
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Servers open to the world with lax security...
Christian_<>< Updated - 7th Feb 2009
Anybody who sets up a server that ONLY needs state side access or access in a certain area and they do not deny/allow only the ranges should be fired. Then the argument of what if they go on vacation overseas, the chances of this occurring are about 1 in 1,000,000 and it is just stupid.

All of the uneducated people who allow these ports open to overseas IP ranges known for hacking/spam and why would anyone with common-sense need to allow access to their server for someone in China/Russia/Europe?

People don't care about security in the workplace or for that matter home. It is about pointing on crap, and getting spyware then blaming system admins. The problem is they are not engineered on the frontend to be secure.

I block the entire eastern world, in fact the only access to data I allow is controlled and blocked from the Internet period. Then it is locked down server level, with .htaccess, tcpwrappers, iptables, and so on.

I find it amazing that they are surprised this this happening, they have no idea other than making it easy for the end user and allowing it to be hacked on by criminals on the Internet.

Plus, all of the foolish people who post all of their PRIVATE thoughts, Picutures and daily tasks on the public internet. It is just stupid, and using all of these search engines with these spyware features and not knowing where the data is flowing.....

Lastly, Windows has helped contribute to this disaster, security in Windows is terrible at best and constant worms like Conficker spreading at 10,000,000+ and still ongoig...

The Internet is a cesspool of criminals now, and it has features are functional but admins who set up servers with NO security skills or even caring is to blame.

With all of the scammers/hackers/spammers I cannot understand why people try to say it is wrong to block IP ranges, why in the world would ANYONE in China need to access a site in the United States in which it has NO benefit for them???

It goes back to the same fools who act like it is a crime to block out these people, they offer nothing but trash from there to your server. I do not let them get there I have devices in place to block them, even they hack a box to try to hack my servers I have mechanisms in place. Lastly, the Internet is a criminals paradise with no laws in other countries and they continue to exploit spam/hack everyday because people will NOT block the ranges.


If they want to send an email from overseas then they can send me an IP address other than that it will never be allowed.

The Al Gores of the Internet have allowed it to degrade into a SEWER of trash.
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Check and Check Again
notsuj Updated - 7th Feb 2009
Ok, I understand and agree that IT and SysAdmin groups need to step up the security layer when setting up networks, but why the attack on Al Gore. Does he even know sudosu? A politician does not affect how production and support environments develop their internal / external technology resources. Now please, check your grammar twice when submitting a post!

Maybe just maybe these attacks were the result of complacency in the work environment, the same way I had to struggle to read the first talkback because of cloudy grammar...

Design is life.
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Re: Security
Christian_<>< 7th Feb 2009
Iptables, tcpwrappers, .htaccess, ASA's, snort and so many other security mechanisms are not implemented either from cost or lack of skilled engineer/admins.

NOW they face the gauntlet of notifying customers there data is stolen and getting a black eye from it.

Putting a Server on the Public Internet is akin to placing a PC in a prison with private data and saying don't abuse it.

IF Server Security and Home PC Security was taken seriously a lot of these problems could be avoided NOT completely but make it a heck of a lot more difficult to compromise a system and send out alerts stating something is happening.

The funny part is, with iptables in lets say RHEL you can filter a lot of this out used in tandem with ASA's and such.

There was no excuse for this happening in the first place and from what I understand they have no clue to figuring out who did it (imagine that).

I am sure taxpayers will pay out the damages, like everything else.

In my opinion, the Banks security department and IT system designers need to be fired and bring in some experts to secure these poorly administered servers.

IF they cannot protect the data they have NO business being PCI Compliant or being in business.
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get off it, opensource_user01
GuidingLight 8th Feb 2009
Lastly, Windows has helped contribute to this disaster, security in Windows is terrible at best and constant worms like Conficker spreading at 10,000,000+ and still ongoig

a giveaway?
Okay tell me again, why is cloud computing good? devil
Maybe I?m just splitting hairs here but...let's put aside the network issue and look at the numbers in this story, they seem a little funny to me...49 city's, 130 ATM's and 30 minutes, that makes an average of about 2.5 ATM's per city, OK that?s believable, BUT $9 Million in 30 minutes? just the $9 Million dollar figure divided over 130 ATM's comes out to just over $69,000 per ATM over a 30 minute period, I personally have a hard time believing an ATM has over $70,000 in it at all times? What do you think??!
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Right now its just recession sign - blatant schemes to get yours while it still means something even if the method is illegal.

If they become heroes it is deep depression times.
It is just one that was reported.

Citi Group outsourced IT services to India. Another court ruling in NJ exposed India IT bank ID thieft on a massive scale.
The banks just get thier FDIC back from taxpayers, they don't loose a thing so nothing will change.
US Financial IT location and use of H-1B workers needs to be disclosed to protect consumers.
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A N.J. court exposed massive identity thieft much like this that was the result of H-1B and outsourcing to India.
Not able to hold non-US citizens accountable, they ruled that the bank should be held responsible for damage to the tens of thousands of customers.
Until 2009, banks had no down-side.

Yeah, Citi-Bank took a huge US taxpayer bailout, laid off US IT workers and sent all work to India.
0 Votes
+ -
Fish, the money maybe adds up....
NLevy 13th Feb 2009
Looking around, in half an hour, I could maybe get cash at 3 to 5 ATMs - but 2 or 3 is more reasonable. Then I could take the max out of 2 or 3, up to maybe 5 different cards at a go, but more likely use only up to 3 per time standing at one ATM. The only way I can get into a $9 million range - is if the maximums are higher than the standard $300 - and more like a $1,000. The ATMS themselves should have been reporting unusual behavior, maybe the crooks thought it would within 1/2 an hour. And it seems, getting into other things and taking away information was probably more important than the cash - since most of that cash is probably not going back to the original mastermind. (Who will sit above all this while the FBI goes after a series of poor communities with a sudden windfall and sheepish looks on their faces for falling for "this card scam".)

The bank is at fault for providing services beyond what they can secure.

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