How Did Hackers Steal $100 Million From The NY Fed?
FED HAS BEEN HACKED AT LEAST 50 TIMES
Maria Bartiromo With Fed Mouthpiece Jon Hilsenrath
Solid discussion of Federal Reserve computer insecurity, the Bangladesh central bank attack at the NY Fed where hackers got away with $100 million, interest rates, commercial real estate, and Britan's Brexit vote and its effect on Fed policy.
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UPDATE -- HACK AT THE NEW YORK FEDERAL RESERVE
U.S. investigators suspect the theft by computer hackers of $100 million from Bangladesh’s central bank was partly an inside job—the first hint of culpability in a case that has exposed new vulnerabilities in the international banking system.
Agents with the Federal Bureau of Investigation have found evidence pointing to at least one bank employee acting as an accomplice, people familiar with the matter said. The evidence suggests a handful of others may also have assisted hackers in navigating Bangladesh Bank’s computer system, the people said.
The hackers tried to steal nearly $1 billion in a brazen attack that involved an extensive penetration of Bangladesh Bank’s computers, dozens of orders on the official interbank fund-transfer network and a money trail that ran through the Philippines’ murky casino business, according to investigators. The attackers successfully transferred $100 million out of the bank’s account at the Federal Reserve Bank of New York. Officials have been able to recover about $20 million.
More from Bloomberg: How $100 Million Slipped Through Philippine Cracks: Timeline
REUTERS FOIA EXCLUSIVE -- FED HACKED AT LEAST 50 TIMES
The records represent only a slice of all cyber attacks on the Fed because they include only cases involving the Washington-based Board of Governors, a federal agency that is subject to public records laws. Reuters did not have access to reports by local cybersecurity teams at the central bank's 12 privately owned regional branches.
The disclosure of breaches at the Fed comes at a time when cybersecurity at central banks worldwide is under scrutiny after hackers stole $100 million from a Bank Bangladesh account at the New York Fed.
In eight information breaches between 2011 and 2013 - a time when the Fed's trading desk was buying massive amounts of bonds - Fed staff wrote that the cases involved "malicious code," referring to software used by hackers.
Jun 1, 2016 at 5:35 PM
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