Fergie's Tech Blog

Yet Another Cyber Theft: $50K Stolen from New York Non-Profit

Mary Perham writes in The Corning Leader/Bath Courier:

The FBI has been called to investigate the alleged cyber-theft last week of roughly $50,000 from the Arc of Steuben, in Bath.

Arc Executive Director Bernie Burns said the theft occurred last week after a hacker gained access to an unidentified Arc employee’s personal e-mail at work. The employee also was authorized to handle Arc’s financial information at Five Star Bank, and hackers gained enough details to access the bank funds, Burns said.

Arc’s insurance is expected to recoup the loss, Burns said.

Steuben County Chief Deputy Noel Terwilliger said Wednesday the theft was reported Sept. 23 after information technology staff and fraud investigators at Five Star Bank noticed the illegal transfer of funds. Bank officials took immediate action to prevent a larger sum from being moved out of the Arc account, Terwilliger said.

Although early reports indicated as much as $200,000 had been re-moved from the Arc account, Terwilliger said all but about $50,000 has been recovered.

The theft in Bath could be a part of larger nationwide scheme to steal millions from corporations and schools over the past few months. Several health care providers, including non-profit organizations that cater to the disabled and the uninsured have been recent targets, according to The Washington Post.

posted by Fergie @ 10/01/2009 03:44:00 PM