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FBI Says Wire Fraud Scam Sending Millions To China

CmdrTaco posted more than 2 years ago | from the hey-just-stoppit dept.

Security 125

Trailrunner7 writes "The FBI is warning businesses about an ongoing spate of attacks that are stealing millions of dollars from companies through unauthorized bank transfers to Chinese companies. The fraudulent wire transfers are not a new tactic, but the FBI says the current round of attacks is notable in that virtually all of the transfers are going to shell companies based in China and have cost U.S. businesses $11 million. The FBI said that many of the cases it has seen involve well-known pieces of malware, such as Zeus, SpyEye and others. The amount of money the attackers try to transfer varies from $50,000 up to nearly $1 million."

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125 comments

so now Nigeria jobs have moved to china? (0)

Anonymous Coward | more than 2 years ago | (#35953720)

so now Nigeria jobs have moved to china?

HELLO (5, Funny)

GameboyRMH (1153867) | more than 2 years ago | (#35953936)

Greetings,

Allow me to introduce myself. I am Xing Liuxian, the son of emperor Xing Liaopeng, hailing from China. Recently my father has passed away leaving a fortune of 10 billion yuan to me and my siblings, however we are unable to receive the full sum inheritance due to recent changes to tax law that would leave us with only 10%. I am seeking an intermediary overseas who would be able to assist us in exploiting a tax loophole which would allow us to inherit the full sum. For these services we would offer you 5% of the full sum, an amount equal to roughly 80 million US dollars. This is not technically illegal however it is in a legal gray area and would be embarrassing to the family if word got out, so if you are able to assist us, please keep this in the strictest confidence.

Regards,

Liuxian

liuxian@xingpalace.cn

Re:so now Nigeria jobs have moved to china? (0)

Anonymous Coward | more than 2 years ago | (#35954540)

Keep running insecure Windows systems you fucks. Serious, for home users that is one thing... but a business can and should hire IT people who don't think the whole world begins and ends in Redmond. Ah well, not like Microsoft will bear any liability for the system compromises for the "secure" software it sells. More satisifed Microsoft customers!

Oh yeah since it pisses off the purists: M$.

Re:so now Nigeria jobs have moved to china? (2)

x*yy*x (2058140) | more than 2 years ago | (#35954890)

but a business can and should hire IT people who don't think the whole world begins and ends in Redmond.

We've already been over the subject of user stupidity and that every OS is as insecure as the user many times, but I wanted to note regarding that line.. Most of the time, proprietary products (be it Microsoft or other large companies that cater to businesses) are the only viable choice. For example in browsers IE is the only one that has great support for internal deployment and policies. As a home user you most likely don't care, but if you're ever needed to handle a large amount of business computers you know how much easier IE makes it. Firefox, Chrome, Opera and all are tailored for home users. It doesn't have any policy handling and deploying. Personally I use Opera and wouldn't ever touch IE, but I understand and don't just ignore the reason companies want to use it. And it's not only IE, it's also Windows and many other commercial software.

Re:so now Nigeria jobs have moved to china? (1)

lennier1 (264730) | more than 2 years ago | (#35954742)

Either that or it's the first volley in a war between Nigeria and China.

Cant figure this one out. Quite inexplicable. (0)

140Mandak262Jamuna (970587) | more than 2 years ago | (#35953746)

I am not able to understand this. They already own USA. Then why are they stealing from something they already own? Well, chalk it up to yet another thing of deep eastern mysticism unfathomable by the shallow western philosophical materialists.

Re:Cant figure this one out. Quite inexplicable. (3, Informative)

erroneus (253617) | more than 2 years ago | (#35953898)

We said and feared something similar when Japan was on an economic rampage.

China owns a lot of US Debt. That's not the same as owning the US... not yet anyway. China has been playing a lot of dirty money games such as valuing their currency based on US currency which is a very certain way to maintain a trade deficit.

But let's not confuse "chinese government" with "chinese people." They are an interesting set. On one hand, they are the most viciously capitalistic people on the planet. On the other, they live under an oppressive government that claims to be communist but are actually just an abusive bunch of control freaks.

So some clever Chinese people realized that they are pretty much "untouchable" and have decided to perform criminal acts from across the internet. They also know they are likely not to get punished so long as they pay off the right officials in the process. It's how their game is played.

Re:Cant figure this one out. Quite inexplicable. (2)

0123456 (636235) | more than 2 years ago | (#35953960)

On the other, they live under an oppressive government that claims to be communist but are actually just an abusive bunch of control freaks.

What's the difference?

Re:Cant figure this one out. Quite inexplicable. (4, Informative)

erroneus (253617) | more than 2 years ago | (#35954030)

What's the difference? Wow. Learn what "communism" is supposed to be. For most people, it is the picture of utopia. Most people are "communist" and don't even realize it. The problem is that communism has never happened in the history of the world and the promise of it has been used to overthrow governments and cultures all over the world and have invariably resulted in oppressive and abusive states like China, the former USSR, Cuba and who knows where else.

Seriously, I invite you to learn what communism is supposed to be. If you spend even a little time learning about that and about human behavior, especially from a sociological perspective, you will see pretty clearly that communism is a huge lie that can never happen because people are involved. Once you have learned those things, you will see the difference. Communism ain't what you think it is.

Re:Cant figure this one out. Quite inexplicable. (1)

0123456 (636235) | more than 2 years ago | (#35954210)

What's the difference? Wow. Learn what "communism" is supposed to be.

I'd rather look at what "communism" has actually been in every country where it's ever been tried: an abusive bunch of control freaks telling everyone what to do and murdering those who disagree.

Re:Cant figure this one out. Quite inexplicable. (0)

Anonymous Coward | more than 2 years ago | (#35954554)

Yes, let's conflate communism with totalitarianism, even though the later can occcur in ANY economic system. What good are words? Pfft..I know a dirty red when I see one.

Re:Cant figure this one out. Quite inexplicable. (0)

Anonymous Coward | more than 2 years ago | (#35955328)

Totalitarianism cannot occur in a laissez-faire capitalistic market, by definition.

Re:Cant figure this one out. Quite inexplicable. (1)

Qzukk (229616) | more than 2 years ago | (#35955770)

Totalitarianism cannot occur in a laissez-faire capitalistic market, by definition.

If I bought up all the water companies in your nation, who would stand up to me? I would expect any resistance to my rule to "dry up" in three days or so.

Re:Cant figure this one out. Quite inexplicable. (2)

robot256 (1635039) | more than 2 years ago | (#35956292)

Totalitarianism cannot occur in a laissez-faire capitalistic market, by definition.

True, but only insofar as the moment that totalitarian rule starts, it ceases to be a laissez-faire state. There is nothing in laisse-faire capitalism that prevents bad actors from destroying the system, because such measures are called "regulations".

Re:Cant figure this one out. Quite inexplicable. (1)

h4rr4r (612664) | more than 2 years ago | (#35954668)

Good for you. The rest of the world prefers to learn about subjects then compare and contrast them to reality. No fancy book learnin for you.

Re:Cant figure this one out. Quite inexplicable. (1)

Luckyo (1726890) | more than 2 years ago | (#35954772)

So, by your own admission, the "people's democracies" of the former Warsaw pact are in fact a brilliant and shining example of democracy? As well as Democratic People's Republic of Korea?

Seriously, get your head out of your ass. PR calling things exact opposites of what they are doesn't make things whose names they usurp equal their actions. If you live in the modern times and still haven't learned this, I have a lot of land on the Moon to sell you.

Re:Cant figure this one out. Quite inexplicable. (0)

Anonymous Coward | more than 2 years ago | (#35955052)

I'd rather look at what "communism" has actually been in every country where it's ever been tried

Actually it works perfectly well as long as your 'country' is small enough to keep those in power in check. Tribal cultures are perfectly capable of instituting communism, but when a 'nation' gets larger than a few hundred people then the leaders are removed from the people and start acting like asses.

Re:Cant figure this one out. Quite inexplicable. (1)

MimeticLie (1866406) | more than 2 years ago | (#35957398)

People use the wrong terminology for things all the time. Consider what the term "hacker" has come to mean in contrast to its original meaning.

If you want to see communism in action (not "communism"), look at the kibbutz system in Israel. You'll find a distinct lack of totalitarianism and murder.

Re:Cant figure this one out. Quite inexplicable. (1)

postbigbang (761081) | more than 2 years ago | (#35954218)

I've studied political and social structures and can tell you that communism is NOT the picture of utopia-- and was never really written to be utopian. It was a reaction to the perceptions of an era gone by. Collectivism was an experiment that lead to totalitarianism, as many sociopolitical experiments often lead.

Re:Cant figure this one out. Quite inexplicable. (2)

gstoddart (321705) | more than 2 years ago | (#35954332)

What's the difference? Wow. Learn what "communism" is supposed to be. For most people, it is the picture of utopia.

Well, there was pretty much always been the concept of the Vanguard [wikipedia.org].

These are the guys who ram communism down everyone's throats and act as the visionaries to make sure everyone complies with their ideals. The initial implementation pretty much requires force in order to make everyone realize the glorious days to come -- Stalin, Chairman Mao, Pol Pot are examples of this. Look at how they're remembered.

Of course, the reason it's never really worked as advertised is that you replace one set of dictators with another -- you also end up creating a new "middle" class who is comfortable and doesn't want to play, as well as a new ruling class who abuse their privileges.

Communism in the abstract is the nice, happy, utopian situation you describe ... but in order to bring it about, it requires vicious people willing to "break a few eggs". Only after it's become the norm do all of these benefits materialize (which so far, is never). Essentially, the Chinese government are the caretakers of that 'vision'.

Communism is generally implemented by a bunch of people deciding on behalf of everyone else to forcibly put it in place. It hasn't resulted in the goals yet, because it never really seems to get out of its enforcement of ideology stage.

You get what you ask for (1)

pavon (30274) | more than 2 years ago | (#35954384)

If your system puts almost total control over property and ownership in the hands of the government then it will always result in a totalitarian regime no matter how much you want to believe otherwise.

Any system of government can be awesome if you ignore it's inherent faults and focus on what it could be if everything magically worked they way you want it to. Benevolent dictatorships have lots of advantages, except that no one is good enough or smart enough for those to be realized, and most people in power aren't even close to good. Democracy can be awesome, but it takes a lot more than mere popular vote to get there; you have to have tons of checks and balances just to prevent the worst of rights violations to occur, let alone reach it's full potential. Considering how challenging it has been to make democracy work, just imagine how much harder it would be if the state had even more centralized power. But that is exactly what communism does. If we want to increase liberty we need power to be more widely distributed not less, and removing property rights does the opposite of that.

So, excuse me if I chose to judge socioeconomic systems on reality rather than fantasy.

Re:Cant figure this one out. Quite inexplicable. (1)

DJLuc1d (1010987) | more than 2 years ago | (#35954640)

Wow. Learn what "communism" is supposed to be. For most people, it is the picture of utopia.

Same could be said of democracy, and look how that keeps turning out. Not trying to trash democracy here, just noting that people keep fucking it up.

Re:Cant figure this one out. Quite inexplicable. (1)

clang_jangle (975789) | more than 2 years ago | (#35954730)

Seriously, I invite you to learn what communism is supposed to be. If you spend even a little time learning about that and about human behavior, especially from a sociological perspective, you will see pretty clearly that communism is a huge lie that can never happen because people are involved.

Exactly, it's too idealistic to be practical. Like Libertarianism (real Libertarianism, not the corporate-sponsored version that's sweeping the land).

Re:Cant figure this one out. Quite inexplicable. (1)

Anonymous Coward | more than 2 years ago | (#35954734)

Your statement is true even if every instance "communism" is replaced with "capitalism" (in the Happy Adam Smith sense) or even "democratic". The comedy here is that people seem to be under the impression that America is a Democracy with Free Markets. It really isn't, not by a long shot.

Re:Can figure this one out. Quite explicable. (2, Insightful)

thomst (1640045) | more than 2 years ago | (#35955012)

Seriously, I invite you to learn what communism is supposed to be. If you spend even a little time learning about that and about human behavior, especially from a sociological perspective, you will see pretty clearly that communism is a huge lie that can never happen because people are involved.

The same can be said for Libertarianism. Both belief systems are based on fundamental misunderstandings of human nature: communism is founded on the notion that workers are somehow less corrupt and greedy than the rich and the despised middle class, libertarianism on the concept that humans will somehow behave at all times, in regards to all decisions, in a thoroughly rational manner, based strictly on their own self-interest, particularly where money is concerned. Both are utterly laughable ideas. The first would qualify as charmingly naive, were it not for the millions persecuted, imprisoned, and killed by so-called "communist" regimes that were, at best, merely industrial-grade authoritarianism dressed up in socialist clown suits. (Since there never has been - and never will be - a Libertarian paradise on Earth, the Libertarian delusion actually does qualify for the "charmingly naive" sobriquet.)

Greed and selfishness are permanent features of human nature. Any political theory that denies that fact is predestined to fail. Likewise, humans are stubbornly irrational critters, prone to making decisions for silly, provably-wrong, and/or strictly emotional reasons that wind up being completely contrary to their personal self-interest. And any political theory that studiously turns its pretty head away from THAT fact is, likewise, doomed from the git-go to fail hilariously.

Re:Can figure this one out. Quite explicable. (1)

erroneus (253617) | more than 2 years ago | (#35956166)

That's such an accurate blanket statement that it should be on a bumper sticker or a tattoo.

Re:Cant figure this one out. Quite inexplicable. (1)

DarthVain (724186) | more than 2 years ago | (#35955316)

The way I get it (and I am not expert) is that Communism is simply the political extension of commune or communal. That is where people work and live together for the common good. I think ideologically it simply means that the rights of the state supersede that of the individual. So far as an ideal goes, its pretty darn good, in principle.

In practice however Greed, and Power tend to get in there and mess about. Where everyone is supposed to be "equal" there tends to be large inequity. China saw that the state managed economy of the USSR didn't really work that well and was really just a huge deck of cards that eventually came down. So they merged Capitalism which seemed to be working for the west at the time with Communism. While it does seem to be sort of working at least from a growth perspective, they basically get the worst from both systems. Lack of any political rights as per a democracy and escalating fiscal inequality among the population. Right now it is working as they hold the hope carrot of a better life out there for the masses. However as soon as they figure out that they have no power politically, and no hope fiscally, I think the proverbial shit is going to hit the fan. How long that will take or will they adjust who knows. Of course people could say that about some western countries right now also.

Re:Cant figure this one out. Quite inexplicable. (1)

jesseck (942036) | more than 2 years ago | (#35955360)

I've believed Communism would be the best form of government... but Human Nature makes that impossible. So, we'll settle for second best, such as a Republic or Democracy, where at least a mass of human nature can hopefully cancel out the evil.

Re:Cant figure this one out. Quite inexplicable. (0)

Anonymous Coward | more than 2 years ago | (#35955646)

On the other side of the coin capitalism has never really happened either... Our picture of what capitalism is does not fit the definition at all. The whole thoughtless raging against these ideas is rather farcical if you really take a look at either system of resource and wealth management. Neither has ever existed and neither ever will.

I would entirely agree with you that most people lean more toward communist ideas than capitalist ideas regardless of what they will tell you because they don't understand what the words actually mean and are programmed with knee-jerk reactions whenever they are queried on the topic.

Re:Cant figure this one out. Quite inexplicable. (3, Informative)

Hatta (162192) | more than 2 years ago | (#35956460)

The problem with communism as it's been tried so far is that it hasn't been democratic. Totalitarian communism is just as bad, and bad for the same reasons, as totalitarianism capitalism. What the world needs is democratic communism.

FWIW, Bakunin forsaw the problems with Marxism well before it was ever applied. He famously said "freedom without Socialism is privilege and injustice and that Socialism without freedom is slavery and brutality". He was right on both counts.

Re:Cant figure this one out. Quite inexplicable. (1)

nedlohs (1335013) | more than 2 years ago | (#35954294)

Communist is a subset of control freaks - there are plenty of control freak systems that are not communism.

And you can't be stupid enough to not know that.

Re:Cant figure this one out. Quite inexplicable. (0)

Anonymous Coward | more than 2 years ago | (#35955246)

The USA would effectively be communist if

a) all publicly-traded companies had exactly 330 million shares of stock.
b) all citizens were given one share of stock in each publicly-traded company.
c) every time a new citizen is born, each company issues one more share of stock.

Re:Cant figure this one out. Quite inexplicable. (1)

Tolkien (664315) | more than 2 years ago | (#35955636)

But what would happen to shares of the deceased? Your idea fails to account for this.

Re:Cant figure this one out. Quite inexplicable. (-1)

Anonymous Coward | more than 2 years ago | (#35954052)

We can easily erase the dept by just nuking china.

Re:Cant figure this one out. Quite inexplicable. (1)

guybrush3pwood (1579937) | more than 2 years ago | (#35954098)

Why complain when you can bomb them? That seems like your standard foreing-policy to deal with all those half-naked, food-deprived, thirsty countries in the middle east.

Re:Cant figure this one out. Quite inexplicable. (1)

nedlohs (1335013) | more than 2 years ago | (#35954236)

Owning US Debt is never going to be the same as the owning the US. The US will just print it and send over the worthless digital paper. Now that would be a very unpleasant experience for Americans and also unpleasant for the Chinese (though less so).

Pegging, well psuedo-pegging, their currency isn't really a dirty money game. The US controls half that game and could stop it overnight too.

Re:Cant figure this one out. Quite inexplicable. (1)

WindBourne (631190) | more than 2 years ago | (#35954726)

This is NOT about owning our debt. It is about owning the companies, obtain the IP, and then moving the manufacturing to your own location before you decide to hit them hard.

Re:Cant figure this one out. Quite inexplicable. (1)

countertrolling (1585477) | more than 2 years ago | (#35954426)

But let's not confuse "chinese government" with "chinese people."

What the hell is that supposed to mean? Is the Chinese government run by Albanians, or what?

Re:Cant figure this one out. Quite inexplicable. (1)

clang_jangle (975789) | more than 2 years ago | (#35954888)

No, they're run by large, multinational corporations same as every other modern country.

Re:Cant figure this one out. Quite inexplicable. (1)

countertrolling (1585477) | more than 2 years ago | (#35955020)

And these corporations, they're run by what, martians? See, it still makes no difference. All we are seeing is how power evolves. Humans are just the medium, not really in any direct control.

Re:Cant figure this one out. Quite inexplicable. (1)

guruevi (827432) | more than 2 years ago | (#35957222)

What's the difference with the US? Except that the US Government owes China and the US values it's currency based on oil and by forcing other economies to use it.

The US-ians are also viciously capitalistic, they'll even forgo Universal Health Care as long as it doesn't impact them. They live under an oppressive government that claims to be democratic but are actually just an abusive bunch of politically incestuous control freaks.

So some clever US people realized that they are pretty much "untouchable" and have decided to perform criminal acts across it's own and other economies. They also know they are likely not to get punished as long as they pay off the right officials in the process. It's how their game is played.

Re:Cant figure this one out. Quite inexplicable. (1)

gstoddart (321705) | more than 2 years ago | (#35954140)

I am not able to understand this. They already own USA. Then why are they stealing from something they already own?

Well, if you own a bunch of US debt, and steal a bunch of cash ... you get paid twice. Greed is a pretty easy motive to grasp.

And, as has been pointed out, this may not be the same people who own the debt ... when you're willing to do this kind of large-scale fraud, you're certainly not playing by any "rules" of good conduct.

Re:Cant figure this one out. Quite inexplicable. (2)

HermDog (24570) | more than 2 years ago | (#35954182)

The way things are going, I figure it's the only way the Chinese can be sure they'll get any return on their investment.

Re:Cant figure this one out. Quite inexplicable. (0)

Anonymous Coward | more than 2 years ago | (#35954252)

The US should deduct what ever funds are stolen and transferred to China from the overall debt they own. Perhaps this will at least give them an incentive to crack down on this type of stuff.

Re:Cant figure this one out. Quite inexplicable. (1)

clang_jangle (975789) | more than 2 years ago | (#35954930)

Because we all know that China is a monolithic organism masquerading as a nation of individuals?

Re:Cant figure this one out. Quite inexplicable. (2)

cavreader (1903280) | more than 2 years ago | (#35954172)

China holds approx 6% of outstanding near term treasury certificates. How you figure they own the US is a mystery.

Re:Cant figure this one out. Quite inexplicable. (1)

MrHanky (141717) | more than 2 years ago | (#35954192)

Less money in circulation means each dollar is worth more. The Chinese are just taking money out of the country to prop up the value of the dollar as a currency. Otherwise it would end up worthless, destroying their investment. Really, the U.S. should thank the Chinese government for enabling them to pay back their debts in money that has value to them. Twice.

Chinese only much less than 10% of our debt (1)

rsborg (111459) | more than 2 years ago | (#35954488)

I am not able to understand this. They already own USA. Then why are they stealing from something they already own? Well, chalk it up to yet another thing of deep eastern mysticism unfathomable by the shallow western philosophical materialists.

The biggest owners of the US Debt are US Citizens and companies.
http://www.mint.com/blog/trends/who-owns-the-u-s-debt-07152010/?display=wide [mint.com]

China only owns ~25% of the foreign holdings, which is only 23% of the debt, so basically they own ~6% of our debt.

In the infographic, the "Federal Reserve and US Intragovernmental holdings" is mostly money lent out to print money and Social Security accounts.
So the government for the past 30+ years has been spending like a drunk sailor (on wars, and corporate welfare) using YOUR social security deposits, and now wants to cut your benefits to "settle the balance". How nice of them.

I'd prefer they pay back Social Security by running a damn surplus for a few years. Start by stripping the corporate welfare and "loosened tax rates" for billionaires and other tax cheats.

Re:Chinese only much less than 10% of our debt (1)

networkBoy (774728) | more than 2 years ago | (#35955456)

You should be fair about this.
Most billionaires pay vastly more of their income as a percentage to taxes than you or I do.
If you want to tighten up the tax code, that's fine, but to say individual rich people are not pulling their share is FUD.

Re:Chinese only much less than 10% of our debt (0)

Anonymous Coward | more than 2 years ago | (#35955860)

Most billionaires pay vastly more of their income as a percentage

LOL WAT?

Warren Buffet famously announced that he pays less than his secretary.

The real issue with dweebs screaming about "teh richies!!1!" is that the vast majority of those millionaires and billionaires have nothing but paper. If the stock market crashed tomorrow they'd all be in the streets sobbing about the millions and billions they "lost" that they never really had to begin with. They aint rich.

Re:Chinese only much less than 10% of our debt (1)

guybrush3pwood (1579937) | more than 2 years ago | (#35957034)

They aint rich

Curiously enough, you take the bus to go to the supermarket, they rent a Black Hawk.

Re:Cant figure this one out. Quite inexplicable. (2)

WindBourne (631190) | more than 2 years ago | (#35954802)

Because China is at war with the west. It is not just American firms, but Western firms. That includes Canadian, Australian, UK, and all of EU. Everybody thinks that it is in China's best interest to keep us going. Nothing could be further from the truth. You always wiped out an enemies strength when possible to make it easy to invade them later. Ganghis did it. So did Napoleon and the Romans. It works wonders. The real strength of the west has been that we had a mostly diversified and distributed economy amongst us that was impossible to destabilize. Now, China is going for the heart of it.

Re:Cant figure this one out. Quite inexplicable. (1)

Tarlus (1000874) | more than 2 years ago | (#35956890)

China is not stealing from USA. Thieves and scammers are stealing from people and businesses.

2 factor authentification (1)

Liquidretro (1590189) | more than 2 years ago | (#35953758)

I assume if your using 2 factor authentication it prevents you from an attack like this, because the attacker does not have your 2nd factor only your password?

Fuck China. (-1)

Anonymous Coward | more than 2 years ago | (#35953782)

There is not one positive thing that dealing with that country does for us. Between manipulating currency, stealing our jobs, stealing our IP, supporting North Korea, creating malware, hacking our computer networks, destruction of the environment, unfair trade practices, ignoring copyright and patents, to flat out theft of money as this article discusses.

We should not deal with them ... period.

But the big multinationals bend over backwards so we can open a few more pizza huts and sell off our future so that next quarter's numbers look better.

Re:Fuck China. (0)

Anonymous Coward | more than 2 years ago | (#35955016)

You have to be kidding me with "STEALING our jobs". They didn't steal anything.

You're such an idiot you don't even realize it. In your first point (manipulating currency) you defend free markets/no interventionism, but then when you utter such nonsense as "stealing our jobs", you preach the opposite.

Get out of your linux every once in a while and learn about the real world out there, which is complex, has no clear evil, and has a million shades of gray.

Maybe it's time to update the banking system? (1)

Megor1 (621918) | more than 2 years ago | (#35953816)

It's hard to imagine that we still use things like checks and wire transfers. They are extremely vulnerable to fraud, the banks have made no strides to update a system they know is insecure because it's cheaper for them to let their customers suffer or eat the loss than to update to a secure system. Even credit/debit cards which are cloned all the time are easily protected by switching to smart cards instead of magnetic media, but at least in the US no changes have been made (In Canada I did see places now using smart cards for purchases).

Re:Maybe it's time to update the banking system? (1)

jandrese (485) | more than 2 years ago | (#35954472)

The banking system seems set up to facilitate fraud sometimes. Every time we hear about a wire transfer, the police have to point out how they're untraceable and any money sent over them is just gone. This sounds insane to me, why aren't there computerized logs of every single transaction? Finding out where money went should be as simple as "ok, it was transferred to , from there it was transferred to , and then to . At the last bank it was withdrawn as cash. With that information, you should be able to go to the bank and get the security camera footage, signature, account holder information, etc... It's not perfect, but it sure beats " electronic transfer are impossible to trace".

Heck, every time I've had to use wire transfers, it sits around for a few days so the fed can leech interest off of it. Seems to me it should be possible to head that fraudulent transaction off at the pass if the authorities can act fast enough. Granted, it would lead to the same outcry you get when Paypal freezes an account, but it seems better than funding organized crime all over the world.

Re:Maybe it's time to update the banking system? (2)

operagost (62405) | more than 2 years ago | (#35954644)

Every time we hear about a wire transfer, the police have to point out how they're untraceable and any money sent over them is just gone. This sounds insane to me, why aren't there computerized logs of every single transaction?

There are. Protip: the police (and banks) lie.

Re:Maybe it's time to update the banking system? (1)

jandrese (485) | more than 2 years ago | (#35955152)

Why? I refuse to believe that everybody else in the world is in on the scam. Is it just because it would be work and they're too lazy? It doesn't make sense to me that a bank wouldn't want to get its account back, I mean that is literally money in the bank.

Re:Maybe it's time to update the banking system? (0)

Anonymous Coward | more than 2 years ago | (#35955754)

Policing organizations don't have the abilities to investigate international crime. The FBI is charged with those if I'm not mistaken and they only go after the most egregious cases. We're often talking multi-year long investigations where millions of dollars are involved. These $500,000 - 1 million dollar cases are small fry and the criminals know that. If you are a good criminal you know the various laws. For instance anything under like $200-$700 (I don't know what the current number is) on a credit card isn't something that is even investigated by a legal organization. So what the criminals do is limit how much they will charge on any given card. Thus the authorities don't get involved.

Re:Maybe it's time to update the banking system? (2)

causality (777677) | more than 2 years ago | (#35954872)

The banking system seems set up to facilitate fraud sometimes. Every time we hear about a wire transfer, the police have to point out how they're untraceable and any money sent over them is just gone. This sounds insane to me, why aren't there computerized logs of every single transaction? Finding out where money went should be as simple as "ok, it was transferred to , from there it was transferred to , and then to . At the last bank it was withdrawn as cash. With that information, you should be able to go to the bank and get the security camera footage, signature, account holder information, etc... It's not perfect, but it sure beats " electronic transfer are impossible to trace".

It depends. The paper trail is precisely how they will get you, if you piss off the wrong people. It's surprisingly difficult for a corporation to do that, even if it's just a shell corporation.

Granted, it would lead to the same outcry you get when Paypal freezes an account, but it seems better than funding organized crime all over the world.

If we were really interested in no longer funding organized crime, we'd end the idiotic War on (some) Drugs and admit that after decades of trying, it has never accomplished its stated goals and never will. Creating a black market to ensure organized criminals always have a steady revenue stream seems to be the only thing it's managed to do. Wouldn't that also restore some respect for the institution of law, if people could see that laws get repealed as soon as it's obvious that they don't work and aren't going to work? This one is long past that time.

It would be the single most harmful thing we could possibly do to organized criminals everywhere. I wouldn't be the least bit surprised if it would do more to undermine them than the next ten best ideas put together. As Al Capone found out, there's nothing quite like contraband that many people really want for ensuring an under-the-table revenue stream.

Re:Maybe it's time to update the banking system? (1)

InlawBiker (1124825) | more than 2 years ago | (#35956304)

Well obviously they should stop using wires. Everything is wireless these days, stop using the wires - problem solved!

I bet patent trolls send money to china, too. (0)

Anonymous Coward | more than 2 years ago | (#35953850)

Hey, all's fair in love and economic warfare.

Malware (1)

0123456 (636235) | more than 2 years ago | (#35953874)

"The FBI said that many of the cases it has seen involve well-known pieces of malware, such as Zeus, SpyEye and others. The amount of money the attackers try to transfer varies from $50,000 up to nearly $1 million"

Guess this is another cost to add to those Windows TCO numbers....

This is impressive *how*? (0)

sehlat (180760) | more than 2 years ago | (#35953890)

Big deal. Our own government policies have sent millions of JOBS to China, and mostly all we get is cheap crud to fill our garages. I have to admire the enterprise of the scam, though, bypassing the middleman and going straight for cash.

Many US businesses have very bad controls. (1)

140Mandak262Jamuna (970587) | more than 2 years ago | (#35953902)

I am very surprised by the lack of controls in some companies. I get magazine subscription form written just like an invoice. I was wondering why, when a friend told me that some companies would routinely mail payments to anything that looks like an official invoice. Also so many company provided cell phone accounts are victims of slamming (adding unauthorized service to a phone bill, mostly things like cheat code alerts for games or apps) and the companies don't even realize it. Some companies with direct billing by hotels routinely pad up the invoices and bills for services never rendered and they get paid. Recently in Pittsburgh the CEO of a tiny bank stole 1 million dollars through unauthorized ATM transactions and brought the bank down.

But of course some companies are on the other end of the spectrum and make mid level managers to sign off on each cup of coffee bought in airports.

fraudulent wire transfers? (0)

Anonymous Coward | more than 2 years ago | (#35954054)

Would these 'compromised business computers` be running Windows by any chance? What imdemnification does the OS vendor provide the endusers against being ripped off in this manner?

Obama's warning.. (5, Informative)

HockeyPuck (141947) | more than 2 years ago | (#35954066)

Dear China,

Please stop or we'll say stop again.

-Barack

Re:Obama's warning.. (1)

WindBourne (631190) | more than 2 years ago | (#35954746)

So far, Obama is doing more than W/neo-cons did. We are seeing the Yuan rise slowly, while under W it was fixed shortly after it was supposed to be freed. Likewise, W/neo-cons passed tax breaks to send manufacturing to China. Hell, the man even allow weapons tech to flow freely to China.

Re:Obama's warning.. (3, Insightful)

nedlohs (1335013) | more than 2 years ago | (#35955228)

Do you just make stuff up?

Under W the yuan moved from 8.27 per USD to 6.84 per USD or a rise of 21%.

Under Obama it's moved from 6.84 to 6.53 or a rise of 5%.

of course Obama has had less time, but it wasn't unpegged until mid-2005 and the highest rate of increase was during W's time.

And of course this isn't really the Yuan slowly rising, it's the dollar falling. Since Obama's been in, sure the Yuan has risen against the US Dollar. But it's fallen aginst the Aussie Dollar, it's fallen against the Euro, it's fallen against the Japanese Yen. It's fallen against the British Pound. And so on and so on. Making your own currency fall is trivial, just print more of it (see QE1 and QE2).

Re:Obama's warning.. (0)

Anonymous Coward | more than 2 years ago | (#35957840)

Since Obama's been in, sure the Yuan has risen against the US Dollar. But it's fallen aginst the Aussie Dollar, it's fallen against the Euro, it's fallen against the Japanese Yen. It's fallen against the British Pound.

Since when did we start caring about unimportant currencies such as the Aussie dollar, ffs?

Re:Obama's warning.. (2)

DarthVain (724186) | more than 2 years ago | (#35955344)

Well you know the saying:

"Don't bite the hand that feeds you."

and I guess it still goes if that hand every now and again bitch slaps you.

Re:Obama's warning.. (0)

Anonymous Coward | more than 2 years ago | (#35956348)

Did you type that on your chinese made computer?

Re:Obama's warning.. (1)

Anonymous Coward | more than 2 years ago | (#35956480)

More like -Everyone.

NOBODY is willing to stand up to China.

Nobody in the government will stand up to them, regardless of party.
No companies will stand up to them, because their profits will suffer. (except maybe Google...)
No consumers will stand up to them, because they like cheap stuff too much.

China is basically saying "we'll do whatever the hell we want" and everyone lets them get away with it.

I do "stand up 2 'em" & THIS may interest you (0)

Anonymous Coward | more than 2 years ago | (#35957894)

http://it.slashdot.org/comments.pl?sid=2108554&cid=35957832 [slashdot.org]

APK

P.S.=> Now, I am pretty much SURE that ANY competent network administrator OR security professional's out there doing the same, for their home systems &/or work systems as well... & if they're NOT? Well, I personally do NOT consider them very competent (as that is a HUGE part of their jobs)... apk

Want to protect yourselves vs. SpyEye & Zeus? (0)

Anonymous Coward | more than 2 years ago | (#35957832)

Defend yourselves vs. both SpyEye &/or Zeus botnets, via these 2 sites that track the entire server network of both the ZEUS &/or SpyEyE botnets:

---

SPYEYE TRACKER:

https://spyeyetracker.abuse.ch/monitor.php [abuse.ch]

ZEUS TRACKER:

https://zeustracker.abuse.ch/monitor.php?filter=online [abuse.ch]

---

I populate (and have been doing so for years since 1997 or thereabouts for many malicious websites/servers) a custom HOSTS file vs. them (along with firewall rules tables (software here usually, as my router rules table is NOT that allowably "big" in my LinkSys/CISCO unit))...

HOWEVER: You can do it exclusively in better routers out there, or purely by firewalls in software too (because they cover IP addresses whereas HOSTS files do not - however, a good 99% of the attackers use host/domain names, because they are "recyclable" & these 2 botnets in particular, are NOTORIOUS for it (they must have learned a 'trick-or-two' from the RBN (russian business network)).

I just believe in the concept of "layered security", so I do them all... as layered security is currently the best thing we have going!

... * Some "Food-4-Thought" & yes, it really works!

APK

P.S.=> Enjoy... apk

$11 million? Meh. (1)

PPH (736903) | more than 2 years ago | (#35954076)

I'd like more coverage of the DOJ's investigation into energy price manipulation. Specifically more news on Eric Holder's "disturbing information [cnn.com]". We are losing orders of magnitudes more money to that that what a few phony Chinese invoices manage to squeeze out of companies with poor financial controls.

Re:$11 million? Meh. (1)

operagost (62405) | more than 2 years ago | (#35954674)

The Fed is manipulating the price through quantitative easing. Arrest Bernanke at the press conference along with all the presidents of the federal reserve banks.

Meanwhile the FBI... (1)

denis-The-menace (471988) | more than 2 years ago | (#35954080)

Meanwhile the FBI spends more time chasing after pot heads, their dealers (because it's illegal and all), people that copy music and movies, and spy on US citizen because the FISA act says they can.

Chinese people scamming people here? Those 2 over there take care of it but one's on training to learn Chinese and the other is on maternity leave.

Re:Meanwhile the FBI... (1)

blueg3 (192743) | more than 2 years ago | (#35954712)

.>Meanwhile the FBI spends more time chasing after ... people that copy music and movies...

That's almost exclusively done by private companies on the MPAA/RIAA's dime. The FBI is rarely involved (since it's not criminal).

Re:Meanwhile the FBI... (1)

nedlohs (1335013) | more than 2 years ago | (#35955432)

No it's done by ICE which doesn't make it any less criminal. Hence why they keep seizing domains and replacing them with http://74.81.170.110/ [74.81.170.110]

Re:Meanwhile the FBI... (1)

blueg3 (192743) | more than 2 years ago | (#35955552)

Almost all of those domain seizures are for sites selling counterfeit products or engaged in the sale of copyrighted works. Admittedly, not all of them are. But ICE shutting down major torrent websites and sites that are profiting from counterfeiting or ignoring copyright (which *is* criminal) is a far cry from the FBI "chasing after ... people that copy music and movies".

Port cities? (3, Interesting)

zalas (682627) | more than 2 years ago | (#35954102)

The companies used for this fraud include the name of a Chinese port city in their official name. These cities
include: Raohe, Fuyuan, Jixi City, Xunke, Tongjiang, and Dongning.

Odd that they'd use the term "port city", as these don't sound like major transportation hubs. What's interesting is that all these places they've named are actually places on or near the border of Russia and China, in Heilongjiang Province.

Re:Port cities? (0, Flamebait)

Dainsanefh (2009638) | more than 2 years ago | (#35954950)

The reason is very simple. The Russians are actually the one involved, but they base their operations across the border.

In this political climate, it is more convenient to blame the Chinese then the Russians. Especially when the USA is actually have a Zionist-Occupied Government (ZOG). Have you wonder why most American Jews have Russian names? (i.e. ending with -sky and -ov)

The Jews knows the Chinese will going to take over their financial empire, and they are acting like being cornered in a dead end street. The Jewish threat to the world will soon be eliminated and real freedom, liberty, ethics and sanity will arrive upon human once again, in post-2012 new civilization.

Re:Port cities? (0)

Anonymous Coward | more than 2 years ago | (#35956826)

Haven't read TFA, but if I get it right, they have a domain name like system for company names. Most companies, registered in their municipality, have to include the name of the city in the company full name in order to tell apart from similarly named companies else where. To register one without, the company has to go up higher level to the national registration, which takes a lot more money and time and financial requirements.

War (0)

Anonymous Coward | more than 2 years ago | (#35954518)

I don't get it . We are always hearing about China stealing our money, our technology and pretty well anything they can get their hands on.
It's as if the China government has declared War on us and they are starting by just taking everything they possibly can.

Where is the money actually going? (1)

iONiUM (530420) | more than 2 years ago | (#35954586)

I find it odd that they can't track the actual recipients of all this money. Is it government sponsored? I guess that's all I want to know.

Re:Where is the money actually going? (1)

hey! (33014) | more than 2 years ago | (#35956940)

Well, that may be harder than it sounds. As zalas pointed out above, the misappropriation of credit is taking place in Chinese cities bordering Russia. They probably have a money laundering scheme that converts that credit into something anonymously negotiable bought from accomplices over the border. By the time you've noticed what's happened, the money has changed hands so many times its in the hands of numerous legitimate businesses and has been for quite a few transactions.

So what you've got to do is trace that chain of transactions back until you find the frauds. Supposing you manage to get the law enforcement agencies of three (or more) different countries to look into this, the bogus "businesses" on the front end of the chain have shut down. The people behind those fraudulent businesses are still there, but they have a new set of businesses and victims. Since they're operating in a country with endemic official corruption and weak business regulation, they'll never get caught unless they're so greedy they do something stupid. Like still doing this when the Chinese government decides it needs to make a show of throwing some corrupt people under the bus.

And there is no cold war on (1)

WindBourne (631190) | more than 2 years ago | (#35954664)

Yet, China directs their large number of attacks at the west, mostly America, to drain us of cash. Smart on their part.

I think of all the lovers of that on this site, mostly from the west, who do not think once about the fact that this is backed by the CHINESE GOV.. If the CIA was backing such an operation, these same ppl would be screaming bloody murder and saying that we were in an active war with somebody. Hell, I have seen ppl here support CHina's attack on the west, while being upset about the west's stuxnet attack on Iran's nuclear weapons program.

Just amazing.

Re:And there is no cold war on (0)

Anonymous Coward | more than 2 years ago | (#35954858)

I have yet to witness a public outcry about the CIA's operations. What was that thing with the tanks for the catholics in South Sudan that accidentially fell into the hands of the islamic North again?
Who cares right, it's just tanks, not like they hacked anyone...

Re:And there is no cold war on (0)

Anonymous Coward | more than 2 years ago | (#35955856)

I doubt China is involved. These are minor amounts of money. I wouldn't be surprised if the Russian mob were involved though. Russian mob has control of the Russian government. It is immune from prosecution. China is also known for payoffs so if people are doing this along the Russian border as it sounds like they are it is just a diversion tactic when it comes to blame. I'm betting that the Russians are paying Chinese or maybe Russian Chinese looking individuals and producing fake identifying documents to setup these accounts. Then when they get the money they drop head back over to Russia where they can't be prosecuted. It isn't a matter of identifying whom when those involved are protected by a government. That is why investigations go nowhere. Not a lack of capability.

Re:And there is no cold war on (1)

WindBourne (631190) | more than 2 years ago | (#35958074)

Exactly. It is MINOR amounts from a gov. POV. However, what it does is drain and destroy other companies. From these companies POV, it is a MAJOR amount of money.

11 million only? (1)

TheLink (130905) | more than 2 years ago | (#35955122)

Doesn't seem like such a big deal. Just the 77 million stolen accounts from PSN could be worth about that already.

So is this just another China = bogeyman propaganda piece?

11 million is just a rounding error compared to how much the Federal Reserve, investment bankers etc have taken from the US people.
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