ATM Fraud Linked In RBS WorldPay Card Breach

Thieves Net $9 Million in 30 Minutes
ATM Fraud Linked In RBS WorldPay Card Breach

In what is being called a well-orchestrated ATM card scam, the true extent of RBS WorldPay's public announcement in late December that its computer systems had been hacked in November has been revealed. In a news report on Wednesday, FBI law enforcement said that a network of thieves withdrew $9 million from 130 ATMs in 49 cities around the world just after midnight on November 8 with cloned cards created from stolen data taken in the RBS WorldPay hack.

See Also: Balancing Fraud Detection & the Consumer Banking Experience

Back on December 23 the U.S. payment processing arm of the Royal Bank of Scotland, RBS WorldPay, announced that its computer system was hacked in November and personal information on 1.5 million cardholders may have been affected. Only about 100 cardholders were directly affected by fraud, the company said in its public announcement about the breach. RBS WorldPay sent letters notifying the affected cardholders beginning December 23 (RBS WorldPay announcement).

A unique twist in the case is the hackers that took the card information in the data theft then cloned cards and changed the daily withdrawal limits on the cards, which allowed them to use the same cards over and over to withdraw $500 each time. The cities where the thieves took money included Atlanta, Chicago, New York, Montreal, Moscow and Hong Kong. The authorities said that they had never witnessed a fraud on such a large scale or so well coordinated.

The FBI has no suspects in the case and has issued information posters asking the public for help in identifying the thieves. There are at least two class action lawsuits filed by law firms in Atlanta and Philadelphia against RBS WorldPay, charging the company failed to protect personal information.


About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.




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