Key Loggers Strike Online Brokerage Houses
from the costly-security dept
One of the more popular identity theft scams these days is to use keyloggers to get someone's bank account info and then take their money. However, it looks like some organized crime groups have taken this up another level with some online brokerage houses. Apparently, both TD Ameritrade and E-Trade were recently victims of multimillion dollar frauds when identity thieves used all of the accounts they had collected up to stage a huge pump-and-dump scam. Basically, they collected a large number of logins to various accounts. But rather than directly going in and stealing the money, they used all of these accounts in a short period of time to buy certain stocks, pushing the value up, and allowing themselves to sell large quantities of the stock. Both brokerage houses said they had to cover their customers losses out of pocket, with E-Trade paying $18 million and TD Ameritrade spending $4 million. Both claim they're trying to make sure this doesn't happen again, mainly by being able to spot such frauds faster. Still, it is interesting to see how these identity theft scams continue to evolve -- and how they're clearly getting increasingly sophisticated.