U.S. Bank Hit by International Hackers

Counterfeit ring hacks Nebraska bank's computer

July 24, 2003

No customers sustained any losses. The only impact felt by our customers is the inconvenience of getting new debit cards issued to them. -- Bank president Mark Sutko

KEARNEY, Nebraska (AP) -- Some customers of a Kearney bank lost access to their debit card accounts after a Malaysian counterfeit ring hacked the bank's computer system and attacked its Visa Check Card program.

According to a report in the Kearney Hub, over the weekend the Malaysian crime ring stole debit card numbers and made $13.99 transactions on Platte Valley Bank accounts, said bank president Mark Sutko.

The bank took immediate action to stop the fraudulent authorizations. Using its fraud detection and prevention systems, Platte Valley was able to identify all the card numbers involved and took steps to protect customers affected, Sutko said.

"We limited the impact to a small number of customers," Sutko told the Kearney Hub. "No customers sustained any losses. The only impact felt by our customers is the inconvenience of getting new debit cards issued to them."

Informing customers

Sutko said the bank sent letters to customers whose accounts were targeted.

"We are letting people know if they need to have new debit cards issued," he said. "The bank wants to alleviate any concerns our customers have."

Todd Stover of Kearney was among Platte Valley debit card holders whose accounts were affected. When Stover tried to use an ATM Monday for a cash withdrawal, the machine would not accept his PIN number.

Stover said he was required to order a new debit card with a different account number. He said an authorized charge of $13.99 appeared on his account, but the bank immediately removed the transaction.

Investigation continues

Sutko said Platte Valley became aware of the Malaysian counterfeit ring's activities when the bank's high-tech trip wires discovered the unauthorized transactions.

"Platte Valley also has implemented additional fraud prevention processes and technology features to lessen this type of fraud exposure and help prevent it from re-occurring in the future," said Sutko.

Sutko said law enforcement officials would not be contacted about the situation and the bank is handling the problem internally.

http://www.cnn.com/2003/TECH/internet/07/24/bank.hack.ap/index.html