Stratfor Breach Leads To Over $700k In Fraud 68
wiredmikey writes "It isn't often that after a data breach involving credit cards, the public is given information on the exact amount money lost by consumers as a result. Thanks to the FBI, however, we now have a better understanding of what 60,000 stolen credit cards translates to financially, as this data was included in their investigation notes while working the Stratfor case. The last time the public had something close to actual stats from the source, we learned that the TJX breach cost Visa $68 million in 2007, two years after the TJX network was compromised by Albert Gonzalez. Yet, those were Visa's estimates. Now, in the aftermath of the Stratfor breach, the FBI has attributed $700,000 worth of charge fraud to the 60,000 credit card records taken during the network compromise. AntiSec supporters walked away with 860,160 usernames and passwords, in addition to the credit card records."
Charge fraud is the new armed bank robbery (Score:5, Interesting)
Credit card fraud is a huge illegal industry. It finances drug gangs and cartels, terrorists, small organized crime, major organized crime (mafia), and occasionally the rogue individual hacker. It's the new form of armed bank robbery. Instead of guns they use computers though.
Of course while $700K in fraud by a few people is nothing to ignore, it is a bit ridiculous that the FBI devotes so many resources to catching these scumbags, while virtually ignoring the guys who swindle billions of dollars through stocks, insider trading, and pyramid schemes.
Re:Charge fraud is the new armed bank robbery (Score:5, Interesting)
Given lulzsec's generally loose-cannon approach, it isn't clear that the FBI had to put them up to it; but the FBI certainly did stand by and do some case building while they knowingly watched Stratfor and their customer lists burn... I'll be interested to see if that ends up being awkward for them in some way...
Re:The real losers (Score:2, Interesting)
The cost is passed on to everyone, not just credit card users
Even in places where charging extra for credit card usage is allowed (India), many merchants still prefer Credit cards for larger amounts since showing an ID is required, reduces the documentation work for the retailer(large cash transactions have a lot of paperwork involved) and its safer for the retailer since the money cannot be stolen
Online payments are also much more secure (though less convienient) in India as compared to US, but dont support automatic payments
Look up Verified by Visa and 3D secure
Safety features exist, they are just not implemented in US since the customers there dont feel threatened by fraud due to strong consumer protection laws
The roaring 20's all over again? (Score:5, Interesting)
Re:So here we have the real motive (Score:5, Interesting)
It's really tough to imagine a nastier or more stupid thing to do than use stolen credit cards with charities.
Maybe that was Hammond's whole idea. By feeding bogus credit-card donations to controversial charities like the Church of Scientology, ACLU, NRA, or Freedom From Religion Foundation, you could effectively DoS them, as far as their ability to take Visa/MC is concerned.
Re:So here we have the real motive (Score:5, Interesting)
Re:So here we have the real motive (Score:2, Interesting)
I am confident that the NRA is not a charity. It is a political action committee.