Business Identity Theft
News Stories and Alerts

• Former Employee Accused of Charging more than $100K in Personal Expenses to Business Credit Cards
  A former bookkeeper of a southern Indiana small business, whose responsibilities included paying company credit card bills; issuing company credit cards to new employees; keeping track of expense records; and handling company mail, reportedly used her access for personal gain. The former employee allegedly opened a credit card in the business owner's name and added a new card, opened a second company card in her own name, and fraudulently used yet another company card. All of the cards were allegedly used to make fraudulent personal purchases totaling more than $100,000.
  WLKY.com, June 4, 2015


• Tennessee Electric Company Sues its Bank to Recover Cybercrime Losses
  Tennessee Electric Company Inc. (now TEC Industrial) was the target of a corporate account takeover in which, despite security protocols that included one-time tokens and verbal transaction approvals, cyber-criminals were able to use a network of money mules to steal $327,804 out of the company’s bank accounts through fraudulent payroll payments. The theft occurred in May, 2012. After recovering only about $135,000, the company is now suing its bank in an attempt to recover its remaining losses of nearly $200,000.
  KrebsonSecurity, August 13, 2014


• Russian Hackers Steal 1.2 Billion Internet User Names and Passwords
  A Milwaukee security firm reported a discovery that a group of Russian hackers used common SQL injection attacks to successfully steal 1.2 billion user names and passwords, as well as more than 500 million email addresses, from hundreds of thousands of websites. Although many security experts believe that the stolen email addresses will be used for spam email distribution (and to potentially distribute malware), the stolen log-in credentials are concerning - particularly because many users routinely re-use the same log-in credentials for multiple websites and services, including online banking, investments, and other important accounts. The bottom line: 1) Change your passwords (using strong passwords), 2) Don't re-use passwords for multiple sites or services, 3) Stay alert for unusual account activity, 4) Change your passwords on a regular basis, and 5) THINK before you click, open, or download.
  New York Times, August 5, 2014


• Company that was a Victim of Cybercrime reaches $350,000 Lawsuit Settlement with its Bank
  TRC Operating Co. Inc., a California oil production company, had $3.5 million stolen from its business bank account in a 2011 cybertheft involving multiple fraudulent wire transfers to accounts in the Ukraine. TRC's bank was able to stop or reverse several transfers, recovering all but $299,000. TRC later sued its bank to recover the remaining losses, and recently received a pre-trial settlement for $350,000, with neither side admitting fault.
  KrebsonSecurity, June 20, 2014


• The Heartbleed Bug - One of the biggest Internet security threats ever seen, ravages Internet security worldwide
  For more than two years, an encryption flaw in a widely used encryption program known as OpenSSL, has left usernames and passwords, credit and payment card information, admin credentials, and an unimaginable wealth of other sensitive information exposed to hackers. Millions of websites (as many as 2/3 of all websites worldwide) utilize OpenSSL, including many of the largest and most popular, as well as many government sites - and that's a huge problem. Companies are scrambling to apply security patches, and millions of users are scrambling to change passwords.
  
  The Heartbleed bug allows hackers to grab and decrypt data from servers and equipment after being encrypted through SSL, and do so undetected.
  
  In addition to websites, the bug also reportedly affects email accounts, instant messaging, firewalls, wireless routers, home and business network equipment, and potentially even mobile phones.
  
  Resources for more information:
  
  Heartbleed.com
  
  Heartbleed bug: Check which of the top 100 sites have been patched



• End of Windows XP Support Means Added Opportunity for Hackers
  On April 8, 2014, Microsoft officially ends support for Windows XP. Without Microsoft support, users will no longer receive security patches for newly-discovered Windows XP vulnerabilities, exposing them (and their businesses) to viruses, spyware, and other malware that can access and steal sensitive information. It has been widely reported that malware exploits targeted at Windows XP vulnerabilities have been stockpiled in anticipation of the XP end of life date. Despite the risks, many businesses and consumers alike have not upgraded to a newer operating system.
  BusinessWeek.com, April 4, 2014


• Document Shredding Company Employee Eyed in Multi-State ID Theft Ring
  An employee who drove a document shredding truck for shredding company Cintas may have shared sensitive documents with identity thieves, rather than destroying them. According to law enforcement and court documents, the ring spanned multiple states and there are potentially thousands of victims, including businesses. The resulting fraud losses reportedly may be in the millions.
  NBCDFW.com, March 28, 2014


• Cyber ID Theft Hits Local Business
  A 6 year old computer services business discovered it was being impersonated by scammers operating a website nearly identical to its own. The real business discovered the impersonation when it began receiving calls from people all over the country who had been contacted by the scammers. Claiming to be from the real business, the scammers threatened that without immediate payment, their computer would be confiscated by the FBI. The victimized business owner successfully had the impostor website taken down twice, only to have it re-appear at new hosting companies.
  NBC15.com, January 15, 2014


• Scam Perpetrators use Identity of Local Company
  Mayfair Title Corp. of Wauwatosa, Wisconsin is a victim of a business identity theft scheme designed to impersonate a legitimate business in order to defraud unsuspecting consumers through a variation of the infamous Nigerian 419 scam. A Mayfair employee said the company is receiving 50 to 60 calls per week.
  WauwatosaNow.com, December 4, 2013


• Bookkeeper Sentenced for $1.1 Million Business ID Theft Scheme
  A former bookkeeper for a San Antonio, Texas interior design firm was sentenced to 57 months in federal prison for a bank fraud and identity theft scheme in which she bilked the business, its bank and American Express out of nearly $1.1 million. The woman admitted taking advantage of her position at Allegro LTD to forge her boss' signature on company checks made out to herself, and also admitted to obtaining an unauthorized company credit card from American Express and using it for personal expenses.
  MySanAntonio.com, December 4, 2013


• 21-year-old Stole Business' Bank Information from Payroll Check, Commits Check Fraud
  A St. Louis woman was arrested on charges of identity theft after she allegedly used a payroll check to steal a company’s bank account information and make fraudulent transactions.
  KMOV.com, November 27, 2013


• City of Wichita, Kansas Offers Free Business Credit Monitoring to Businesses Affected by City’s Website Security Breach
  The City of Wichita, Kansas is offering free business credit monitoring to businesses affected by the hacking of the city’s electronic procurement site. The city’s website was hacked over the weekend of October 5th, exposing Social Security numbers, taxpayer identification numbers, and banking numbers of nearly 29,000 local vendors and employers.
  BusinessWire.com, November 22, 2013


• $1.5 Million Cyber Theft Leads to Closure of California Escrow Company
  KrebsonSecurity.com, August 13, 2013


• RSA Warns about New KINS Banking Trojan
  SearchSecurity.com, July 24, 2013


• Online bandits target small businesses too
  MyFoxTwinCities.com, June 10, 2013


• Indianapolis FBI Warns Indiana Businesses of Cyber Scam
  eNewsPF.com, June 4, 2013


• Florida men indicted on charges related to Colorado business ID theft
  The Denver Post, May 31, 2013


• NC Fuel Distributor Hit by $800,000 Cyberheist
  KrebsonSecurity.com, May 13, 2013


• Cyberthieves steal $1.03 million from Cascade Medical Center in Washington State
  WenatcheeWorld.com, April 26, 2013


• GSA breach exposes SSNs, bank account information, and other private information for 183,000 government vendors and contractors
  CBSNews.com, March 15, 2013


• No Help - Court Rules against Business Identity Theft Victim Company in $440,000 Cyberheist
  KrebsonSecurity.com, March 13, 2013


• U.S. Energy Initatives Corp Suffers ‘Corporate Hijacking’
  KHTS News, March 7, 2013


• $1M online bank theft shows vulnerability of small businesses
  BizJournals.com, March 1, 2013


• Business identity theft is on the rise - Lawyers need to be educated about business ID theft to protect themselves and their clients
  Florida Bar News, January 15, 2013


• New Nebraska business registration deadline battles business identity theft
  NE Secretary of State, December 11, 2012


• Action 16 Investigation: Business Identity Theft
  WNEP.com, November 8, 2012


• South Carolina raises number of hacked tax records to 3.8 million - including 699,900 businesses and 3.3 million bank accounts
  Yahoo News - Reuters, November 7, 2012


• Despite warnings, most states slow to confront corporate ID theft
  ITWorld.com, September 5, 2012


• Keys title business victim of ID theft scam and bad luck
  KeysNet.com, August 30, 2012


• Lawyer sentenced for wire fraud in Pinellas corporate ID theft
  BizJournals.com, August 10, 2012


• Identity theft: McGraw-Hill's security phone number stolen
  poughkeepsiejournal.com, July 30, 2012


• Cyberthieves Hit Owners
  online.WSJ.com, July 19, 2012


• APWG Report: Numbers of Brands Targeted by Cybercrime Gangs Sustain Record High in February and March
  Pymnts.com, July 19, 2012


• Cybercriminals Sniff Out Vulnerable Firms
  online.WSJ.com, July 5, 2012


• Owners May Not Be Covered When Hackers Wipe Out A Business Bank Account
  The New York Times, June 13, 2012


• Symantec: Cyber-Attacks Up 81% in 2011, SMBs Increasingly Targeted
  Sci-Tech Today.com, April 30, 2012


• Minnesota Company Victimized by ID Theft
  DL-Online.com, April 2, 2012


• BBB Warns of a Phishing Scam
  KATC.com, March 29, 2012


• Man gets 7 years for his role in trio's Roanoke payroll fraud scheme
  The Roanoke Times, March 29, 2012


• ID-theft hassle gets worse, area businesses find
  Arizona Daily Star, March 10, 2012


• ID theft stings Captain D's franchisee
  Atlanta Constitution Journal / Channel 2 News, March 2, 2012


• Local business falls victim to identity theft
  ABC57 News, March 1, 2012


• Identity Theft a Growing Concern for Businesses
  NPR.org, February 29, 2012


• Metro woman gets prison time for corporate ID theft
  Atlanta Business Chronicle, February 28, 2012


• Stolen credit cards for $3.50 online
  Bloomberg, February 16, 2012


• FBI Warning: DNSChanger malware has infected millions of computers
  Federal Bureau of Investigation, November 2011


• Hackers Take $1 Billion a Year as Banks Blame Their Clients
  Bloomberg.com, August 4, 2011


• Business Identity Theft
  Council of State Governments, June 2011


• Scams more high-tech, vicious
  The Atlanta Journal-Constitution, May 27, 2011


• Cybercrime Losses Among SMBs Reach New Highs In Study
  DarkReading.com, May 6, 2011


• Protecting Business Owners From Identity Fraud
  FoxBusiness.com, May 6, 2011


• FBI Fraud Alert: Fraud Alert Involving Unauthorized Wire Transfers to China
  Federal Bureau of Investigation, April 26, 2011


• Bank Fraud Continues To Plague Businesses, Study Says
  DarkReading.com, April 4, 2011

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White Papers and Special Reports

NBC News Report: "Hackers pull off $70 million cybercrime"