(Bloomberg) — Criminals hoodwinked banks, credit-card networks and a payment-security firm while moving hundreds of millions of dollars, according to the U.S. government. It won't be easy to stop it from happening again.
As U.S. prosecutors announced indictments Tuesday against a hacking ring linked to stock manipulation, gambling and fake pharmaceuticals, details emerged that made payments specialists wince. To move money through the global banking system, conspirators allegedly disguised recipients as pet-supply and dress stores. When financial firms raised alarms, the group feigned shock, paid fines and opened new accounts. And in a twist that turned heads, it even hacked a security company that was supposed to detect its ruse.
"Wow," said Julie Conroy, a security specialist at payments researcher Aite Group. "Shame on this firm for being a victim, because if you're in that position you know the bad guys are coming after you."
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