Fergie's Tech Blog

Compromised PC Leads To Big Fraud Losses For E*Trade

Larry Greenemeier writes on InformationWeek:

A compromised PC opened the door for cyber attackers to wreak havoc on online broker E*Trade. The Securities and Exchange Commission, FBI, and other government enforcement agencies are investigating the crime, in which thieves conducted fraudulent transactions that cost the brokerage millions of dollars to cover customer losses.

E*Trade CEO Mitchell Caplan this week acknowledged during a conference call with financial analysts that his company "experienced a significant increase in losses resulting from fraud relating to identify theft." The fraudulent activity contributed to the $18 million in fraud losses the company reported during its third financial quarter. The company acknowledged in a statement that "the vast majority of online fraud is identity-theft related and is a result of a compromised personal computer."

posted by Fergie @ 10/25/2006 08:31:00 PM