How Citicorp system was raided and funds moved around the world; accounts were vulnerable to international plotters with passwords and more; is there a mole at Citibank?

Article Abstract:

An international computer crime ring, based in St Petersburg, Russia, successfully broke into Citibank's fund transfer system, but quick action by the bank's internal investigating unit and the FBI foiled the plan. The crime ring was organized and led by Vladimir Levin, a 28-year-old who worked for a St Petersburg investment firm. Levin was able to break into Citibank's electronic money transfers systems, which allows customers to directly access the Citibank computer system. The Citibank system transfers about $500 billion every day to accounts all over the world. Levin used illegally obtained security codes and passwords to pose as legitimate Citibank customers. Investigators suspect that Levin was fed information by an insider at Citibank because the system's security features are considered unbreakable. Levin was discovered when he transferred funds from a bank in Argentina to bank accounts in San Francisco. The bank noticed the transfers and quickly informed Citibank.

Electronic Computer Manufacturing, Computers & Auxiliary Equip, Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banking industry, Banks (Finance), Data security, Computer crime, Electronic funds transfer systems, Industry legal issue, Data security issue, Citicorp, CCI

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In-house hackers; rigging computers for fraud or malice is often an inside job; employees are more adept than outsiders at using and abusing the systems; discovering a 'logic bomb.'

Article Abstract:

Disgruntled or dishonest employees are emerging as big threats to corporate computer systems because they are more adept at misusing the systems than outside hackers. Some companies that have been victimized by in-house computer frauds report losses of more than $1 million, in addition to the cost of repair and disrupted operations. Even more devastating is a 'logic bomb', a program that can be timed to crash a system or plant a virus that can destroy data. Among the more notable cases of in-house computer frauds are that of AT&T's London office, where three employees were able to funnel company funds to themselves; General Dynamics Corp, where a disgruntled employee attempted to sabotage a program that was used for building missiles; and Charles Schwab and Co, where some employees used the company's computer system to trade cocaine.

Telephone Communication, Telephone communications, exc. radio, Guided missiles and space vehicles, Aircraft, Ship building and repairing, Telecommunications services industry, Telecommunications industry, Defense industry, Computer hackers, General Dynamics Corp., American Telephone and Telegraph Co., Hacker, Security, Companies, Employee

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As computers flip, people lose grip in saga of sabotage at printing firm

Article Abstract:

Southeastern Color Lithographers Inc of Athens, GA, lost some employees, a number of major accounts and almost went bankrupt in 1987 when its computer system went haywire. For months, employees were confronted with a constant barrage of troubles, such as files being erased, printers that operate without any reason and system crashes. The situation caused so much stress to employees that several quit. Southeastern also lost some customers, who were angry about production delays. At one important sales presentation, files were garbled and the report had numerous errors. Eventually, a programmer from Computer Connection, the store that sold the system to Southeastern, developed a program to catch the culprit. The program identified the saboteur as a newly-hired employee, who was eventually convicted for wrecking computer files.

PRINTING AND PUBLISHING, Commercial printing, lithographic, Cover Story, Printing industry, Sabotage, Southeastern Color Lithographers Inc.

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