Fraudsters are taking advantage of the widely used but obscure Automated Clearing House (ACH) Network in order to pull off cyber attacks. This financial network is used by financial institutions to handle direct deposits, checks, bill payments and cash transfers between businesses and individuals.
For instance, in April, ACH fraudsters moved $1.2m out of a Sugar Land, Texas, importer called Unique Industrial Products, according to a report in the Houston Chronicle. They did it by hacking into the company's computers and then authorizing 39 transfers to move the money out of Unique Industrial's account. Although the bulk of the money was recovered, scammers made $150,000 from the attack -- not bad for 30 minutes of work.
Criminals can make millions a day with ACH fraud, investigators say. And while consumers are protected from this type of fraud, the rules for corporations and organizations are not as clear-cut.
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