Large data losses in the finance industry and how to safeguard information going forward.

When consumer information is compromised, it’s always worrisome for everyone involved. The organizations we really need to be able to trust are the ones in the finance industry. Unfortunately, financial organizations are not exempt from data loss and security breaches. In this article, we’ll explore four of the most memorable security breaches in the finance industry within the last 10 years.

Largest Hacking Scheme Affects NASDAQ, 7-Eleven, and Others

In what was supposedly the largest hacking scheme ever prosecuted in the United States, five Russians and a Ukrainian were able to steal over 160,000 credit and debit card numbers and target over 800,000 bank accounts. Most of the attacks occurred during 2008 and 2009, but they started in 2005 and weren’t caught until 2012.

The hackers stole login information and password credentials to obtain credit and banking information. But instead of attacking individuals, the group of hackers targeted banks and payment processors. The hackers used some of the information to withdraw money from ATMs, but they also sold credit and debit card information to middlemen.

Part of the problem with bringing the hackers to justice is that they have to be extradited, with only one of them actually in U.S. custody.  Another problem is that it takes a lot of unraveling to find out what exactly the hackers have done. If this international case goes to trial, it will be a lengthy one. Current charges include various crimes such as computer hacking, bank fraud, and wire fraud.

JPMorgan Chase Hacking Affects 76 Million Households

Even after Target and Home Depot became the victim of hackers in 2013, the big security attack on JPMorgan Chase came as a big surprise. Between June and July, hackers were able to penetrate deeply into the bank’s computer systems.

The hackers didn’t just go straight for consumer information, but instead used their skills to obtain a road map of sorts to gain insight into JPMorgan’s computer systems. Initially, JPMorgan thought only one million customers were affected, but as investigations proceeded it became clear that the number was far higher.

All in all, the hackers were able to access to over 76 million household accounts as well as seven million small business accounts. The hackers gained access to names, addresses, phone numbers, and email addresses of JPMorgan customers. However, there is no evidence that the hackers stole passwords or Social Security numbers. There is also no evidence that hackers looted any money from the bank accounts of customers.

Massive Breach at Payment Processor Global Payments

In 2012, Global Payments confirmed that card data may have been accessed. Global Payments is a credit card processing company, which processes all of the major credit card types, including VISA, MasterCard, Discover, and American Express.

When a customer swipes a card, the data is sent to a payment processor like Global Payments. The information is then forwarded to VISA and MasterCard. While a hack of a payment processor doesn’t directly affect the merchant or credit card companies, the stolen credit card information can be used to create havoc. And the amounts involved can truly be staggering. For Global Payments processed $167.3 billion worth of transactions in its last fiscal year ending March 2011.

When credit card data is stolen, the consumer can dispute the charge. In breach situations, however, customers are usually offered free credit monitoring. In this particular case, all credit card companies are on the lookout for fraudulent activity.

European Central Bank Was Hacked in 2014

In 2014, the website of the European Central Bank was hacked. The hacker got access to customer’s names, street addresses, phone numbers, and email addresses. Then they made an anonymous phone call and demanded money for the return of the information. The European Central Bank did not give into the blackmailer’s demands.

The information obtained came from a website that was separate from internal ECB systems. The website is only used to gather registrations for events and conferences. The European Central Bank has taken this security threat seriously and is addressing the vulnerability. The German police was also notified of the cybersecurity threat.

The Importance of Cybersecurity

Cybersecurity is more important than ever now. As an answer to increased security hacks of financial institutions, credit card issuers are now increasingly issuing credit cards with chip technology. But financial institutions aren’t the only organizations that need to concern themselves with threats of hackers; cybersecurity affects every business that stores consumer information on the Internet.

eFileCabinet Takes Security Seriously

We know how vulnerable online-based businesses are to hackers. That’s why we take security seriously at eFileCabinet. All of your information is encrypted because your documents are important. We protect access to your files by utilizing user-based permissions, as well. If you have any questions about our security measures at eFileCabinet, please give us a call or chat with us.

By | 2016-12-15T11:58:58+00:00 December 28th, 2015|
Subscribe to the Blog That Solves Office Problems

Free Demo

Request a Demo

Discover eFileCabinet

Chat with us about your needs and we’ll create a free guided test drive just for you.

Demo Form Arrow