The town of Poughkeepsie, N.Y., is the latest victim of a security breach in which $378,000 was stolen from the town's TD Bank NA account, Computerworld reports. Nine attempts to steal money were made over a two-day period in mid-January.
It's not clear how the thieves accessed the account, but the money was transferred to accounts in the Ukraine. The bank has been able to recover $95,000 so far. Still, Town Supervisor Patricia Meyers blasted the bank for failing to protect the town's money:
We find it unacceptable that movement, or attempted movement, of money from a Town account to an account in Eastern Europe did not immediately raise a 'red flag' with the bank, was not questioned by anyone at the bank, but was simply processed.
Questions have been raised about who is responsible for protecting accounts from online criminals. Last month, Lubbock, Texas-based PlainsCapital bank sued its customer, Hillary Machinery, which was hit by an $800,000 cyber theft incident. The bank wants the court to rule that its systems are reasonably secure.