Authorities arrest suspects in relation to cyber heist carried out in Russian Central bank

  09 Dec 2016 , 17:07

Russian authorities arrested a large number of suspects in May in connection with the recently revealed electronic theft of $19 million from accounts held at the Russian central bank, an official said on Wednesday. The bank said last week that hackers had this year used fake client credentials to steal money from correspondent accounts — used to handle transactions on behalf of another bank — at the Bank of Russia.

Banks around the world are tightening the security of their messaging and money transfer networks following a number of cyberattacks – most notably the use of stolen Bangladesh Bank credentials to send SWIFT messages requesting the transfer of nearly $1 billion from its correspondent account at the New York Federal Reserve. The hackers succeeded in transferring $81 million to four accounts in Manila.

Artyom Sychyov, deputy head of the Bank of Russia’s security directorate, said the Federal Security Service, or FSB, and the Interior Ministry, which oversees the police, had run a joint operation after the Russian heist, and that “a large number of people were arrested”. He declined to give further details – but on June 1, the FSB said it had, together with the police, detained some 50 people suspected of the electronic theft of 1.7 billion rubles ($27 million) from unnamed Russian financial institutions.

The FSB and Interior Ministry did not immediately respond to questions about whether this was the operation mentioned by Sychyov. Sychyov said the attack on the central bank had been confined to third-party correspondent accounts. “The payment system of the Bank of Russia cannot in any way be implicated,” he said.

The Bank revealed the attack in a sparse passage on page 37 of a 69-page financial stability report published last Friday. It said the hackers had broken into an electronic system that gives clients access to correspondent accounts held within the Bank. It said they had attempted to steal 2.87 billion rubles ($45 million), of which 1.67 billion was later frozen or recovered.

Since the report was published, central bank officials have declined to answer detailed questions. This week, the Bank of Russia moved Sergei Moiseyev, head of the department for financial stability, which was responsible for the report, to a new job as adviser to the bank’s governor on reform of the leasing industry. The bank did not respond directly when asked if Moiseyev’s removal was linked to the publication of the information about the cyberattack.

Reuters

Booz Allen Hamilton has hired former FBI chief to review security after NSA contractor gets arrested

Image Credit: REUTERS

  28 Oct 2016 , 11:09

Booz Allen Hamilton said on Thursday it had hired a former FBI chief to conduct an external review of its security practices, after the consulting firm learnt for the second time in three years that an employee working under contract with the National Security Agency had been charged with stealing classified information.

Booz Allen, which earns billions of dollars a year contracting with U.S. intelligence agencies, has come under renewed scrutiny in recent weeks after authorities took Harold Thomas Martin into custody. The firm also employed Edward Snowden, who leaked a trove of secret files to news organizations in 2013 that exposed vast domestic and international surveillance operations carried out by the NSA. Snowden, who was in Hong Kong when his disclosures surfaced, lives in Moscow under asylum.

Former Federal Bureau of Investigation Director Robert Mueller is leading the audit of security, personnel and management practices, Booz Allen said in a statement. The review began on Oct. 19. Martin, 51, was taken into custody in August, but his arrest was not announced publicly until earlier this month. Prosecutors have alleged he spent more than two decades pilfering secret documents and hoarding them at his home in Maryland, where investigators said they seized at least 50 terabytes of data.

Among the material allegedly stolen by Martin was a top secret document that contained “specific operational plans against a known enemy of the United States and its allies,” the prosecutors said. The FBI is investigating possible links between Martin and the leak online this summer of secret NSA hacking tools used to break into the computers of adversaries such as Russia and China, U.S. officials said.

“We fired Harold Martin as soon as we learnt of his arrest, and we have been fully cooperating with the FBI’s investigation,” Booz Allen spokesman Craig Veith said. “We are determined to learn from this incident and look more broadly at our processes and practices.”

Reuters