Newsflash | Citibank Hacked For $750,000

Newsflash, Citibank Hack for $750,000

A Citibank server that handles ATM withdrawals was hacked by two Brooklyn men. The hackers made at least $750,000 by fraudulant withdrawals all over New York City.

Experts say this is the first time that a major U.S. banks computer systems have been breached.

“We’ve never heard of ATM PINs coming out of the bank environment,” says Dan Clements  of the fraud watchdog company CardCops, who monitors crime forums for stolen information.

Credit card and ATM PIN numbers show up frequently in underground trading, but they’re usually lthe product of social engineering tricks like phishing attacks, “shoulder surfing” and fake PIN pads affixed to gas station pay-at-the-pump terminals.

But if federal prosecutors are correct, the Citibank attack is an indication that even careful consumers who guard their ATM cards and PIN codes can become a victim.

“That’s really the gold, the debit cards and the PINs,” says Clements.

Citibank denied to Wired.com’s Threat Level that its systems were hacked. But the bank’s representatives warned the FBI on February 1 that “a Citibank server that processes ATM withdrawals at 7-Eleven convenience stores had been breached,” according to a sworn affidavit by FBI  agent Albert Murray.