Hackers Steal $31 Million at Russia's Central Bank (cnn.com) 78
The Bank of Russia has confirmed Friday that hackers have stolen 2 billion rubles ($31 million) from correspondent accounts at the Russian central bank. Central bank security executive Artiom Sychev said it could've been much worse as hackers tried to steal 5 billion rubles, but the central banking authority managed to stop them. CNNMoney reports: Hackers also targeted the private banks and stole cash from their clients, the central bank reported. The central bank did not say when the heist occurred or how hackers moved the funds. But so far, the attack bears some similarity to a recent string of heists that has targeted the worldwide financial system. Researchers at the cybersecurity firm Symantec have concluded that the global banking system has been under sustained attack from a sophisticated group -- dubbed "Lazarus" -- that has been linked to North Korea. But it's unclear who has attacked Russian banks this time around. Earlier Friday, the Russian government claimed it had foiled an attempt to erode public confidence in its financial system. Russian's top law enforcement agency, the FSB, said hackers were planning to use a collection of computer servers in the Netherlands to attack Russian banks. Typically, hackers use this kind of infrastructure to launch a "denial of service" attack, which disrupts websites and business operations by flooding a target with data. The FSB said hackers also planned to spread fake news about Russian banks, sending mass text messages and publishing stories on social media questioning their financial stability and licenses to operate.
Please do something about the headline! (Score:2)
Hackers Steal $31 Million From at Russia's Central Bank
Doesn't sound right, or does it?
Emphasis mine.
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Re: Please do something about the headline! (Score:1)
CNN = Fake News. (Score:4, Insightful)
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If you think that RT, the mouthpiece of Vladimir Putin, has more credibility than CNN, you are an idiot.
Or perhaps more likely, a Russian propaganda troll or an "alt-right" Trump fan. Hard to tell the difference anymore.
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"If you think that RT, the mouthpiece of Vladimir Putin, has more credibility than CNN, you are an idiot.
Rufus the desert blogger UFO crank has more credibility than today's CNN.
can't convince me... (Score:1, Insightful)
That this wasn't done by Putin. Call it a conspiracy theory but the guy is dirtier than dirt.
And now he has a reason to invade the netherlands... or something suitably nasty.
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In other news (Score:5, Funny)
Jill Stein's campaign announces a 27 million dollar donation for recounts in additional states.
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Please, it's not America's Left that has been getting help from Russia all this time. Far from it.
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You're basically saying "the Left can't take a joke" and "the Left's jokes are too mean". Now I'm not commenting on the validity of your comments but do you not see the contridiction in what you're saying?
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"It's a joke. Laugh. Another nail in the coffin for the humorlessness of the Left "
And sadly, it was not always thus. The left's main power source today is not those pinwheels and mirrors it keeps pushing, but the rapidly rotating corpses of Bruce, Sahl and Carlin.
Why can't they roll it back? (Score:5, Insightful)
Serious question: In Debt of Honor [wikipedia.org] there was a hack directed against the NYSE. They rolled back all transactions for the day. In a bank hack no one took physical cash. If they can show the transactions were fraudulent, why can't they just reverse it?
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Re:Why can't they roll it back? (Score:5, Informative)
The basic problem is that it's equivalent to the Russian government printing 2 billion rubles and handing it to the bank to replace a physical theft. There's still the matter of the stolen 2 billion rubles floating around out there. If you don't deal with that somehow, by tracing it down and freezing/deleting it (at which point you're effectively returning it), then all you've done is magically create 2 billion rubles.
Needless to say, this can lead to some serious problems in the long run.
Re:Why can't they roll it back? (Score:4, Insightful)
The more detailed answer is that "money", whether it's physical bills/coins, bitcoins, or digits in an account on a computer, is just a proxy for real things - goods and services. Direct barter is pretty inefficient, in terms of time/effort/etc, so we abstract it with money. Now, while there's really no upper or lower bound on how much 'money' there is, there's a finite amount of physical goods and other productivity in the economy at a given time. Ideally, we'd have a perfect 1:1 ratio so that the amount of money flowing around matches the amount of physical goods/etc. In practice it's pretty difficult to actually do that to an exacting amount, so keeping it reasonably balanced is one of the primary responsibilities of a country's central bank, like the Fed.
The economy is generally growing, which means more goods and services, which means more money is needed to keep pace. Inflation isn't inherently bad, not in small amounts. It's only when inflation goes high that it gets bad. More importantly, negative inflation (deflation) is really really bad, because in that situation, the economy grinds to a halt because nobody wants to spend money (because it'll be worth more tomorrow), and we get into a nasty cycle that's hard to break out of - one that usually requires a lot of inflationary pressure to counteract, such as printing money or a central bank injecting more funds like the Fed did. Otherwise, if the government isn't willing to do enough, you wind up like Japan with your economy stuck in neutral for a decade or two.
So back to the question of reimbursement for bank theft losses - sure, you could probably absorb one or two of these without any real economic impact. The problem tends to come in the long run when you've established a policy of doing so, because it can quickly get out of control - try explaining why you'll reimburse Alice but not Bob for their losses.
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> negative inflation (deflation) is really really bad, because in that situation, the economy grinds to a halt because nobody wants to spend money (because it'll be worth more tomorrow),
This is a fallacy, because most people need to spend most of their income on immediate needs (food, mortgage/rent, utilities, car payments, gasoline, etc.). Therefore the economy will still function. For the people who have surplus income to invest, they already calculate a "real rate of return" by subtracting inflatio
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Serious question: In Debt of Honor [wikipedia.org] there was a hack directed against the NYSE. They rolled back all transactions for the day. In a bank hack no one took physical cash. If they can show the transactions were fraudulent, why can't they just reverse it?
For some of it they did:
That's the transfers they were able to unwind. The other transfers went to non-cooperating banks, or more likely were broken up and bounced from bank to bank and one of the banks in the chain won't play ball.
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They weren't able to roll back most of the transactions because they happened over the course of the year. From TFA:
Editors note: This story has been updated to clarify that the losses cited from cyberattacks at Russia's central bank were for 2016, not a single attack.
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Thanks. Looks like other people were wondering the same thing.
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Serious question: In Debt of Honor [wikipedia.org] there was a hack directed against the NYSE. They rolled back all transactions for the day. In a bank hack no one took physical cash. If they can show the transactions were fraudulent, why can't they just reverse it?
In Dept of Honor, only the transactions with US exchanges where both sides were recorded and could be changed were rolled back. External transactions were beyond their control.
Poor hackers (Score:1)
Dead men walking! Get a good last look at these hackers, here - they're dead men walking!
No Fury (Score:2, Funny)
Like HRC scorned.
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This would have never happened (Score:1)
And so it begins.... (Score:1)
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"how can we even be talking about attacking another nation under the table"
Nations have been attacking one another "under the table" since the dawn of civilization. Some are just better than others when it comes to gathering intelligence and running counter intelligence operations. And foreign intelligence operations are not unconstitutional. The key word being "foreign". The only rule when conducting foreign intelligence operations is don't get caught. That's why everyone's foreign embassies are staffed
I think the First Internet War (Score:5, Interesting)
is on.
A: Because it breaks the flow of a message (Score:1)
Begun (Score:2)
I Guess Snowden Needed (Score:2)
some spending money.
Party On Ed!!
For the Bank of Russia it's not even pocket change (Score:4, Insightful)
It's just numbers on a spreadsheet. The Bank of Russia is Russia's central bank and there is literally no amount of money you can steal from a central bank that will harm it. That's because they're the people who issue the fiat in "fiat currency".
The harm is to the economy as a whole, in the form of inflation. In this case we're talking about the release of thirty one million spurious extra bucks into a two trillion dollar economy. Just a tiny bit of inflation, diluted to homeopathic concentrations and applied to everyone who uses rubles.
Of course the bank has to pursue this because it undermines confidence in the system, but this is as close to a victimless crime as any illegal way of obtaining thirty-one million dollars can be.
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I assume that thirty one million dollars in a two-trillion dollar economy won't be noticed by anyone -- except, obviously, the people enjoying it.
Can't they trace where it went (Score:1)
Serious question: Surely transferring money leaves audit trails? One account is debited while the other is credited.
Does this not leave a record that can be traced?
Let me guess... (Score:3)
The Russians did it.
It's Not Like They Weren't Warned (Score:2)
Russia's been one of the biggest sources of hackers, Internet attacks, online fraud, credit card theft, and the like for years now, and they've done damn all about it.
Serves the bastiges right.