An international crime gang has stolen US$45 million from RAKBank and BankMuscat, in one the biggest cyber frauds to hit the Middle East.
Eight alleged members of the syndicate’s cell in New York have been charged in the US with conspiracy to commit fraud and money laundering.
The crime network hacked into the systems of banks around the world, removed maximum limits for withdrawal at ATMs and stole details of pre-paid debit cards, said the US attorney’s office for the eastern district of New York.
“The stolen card data was then … used in making fraudulent ATM withdrawals on a massive scale across the globe,” the office said.
Prepaid cards are like debit cards, but instead of being linked to a bank account they have their own funds that are topped up like a prepaid mobile phone account.
The eight are accused of taking $2.8m (Dh10.2m) from hundreds of New York ATMs in a day.
Graham Honeybill, chief executive of RAKBank, moved to reassure customers.
“The amount of the potential loss was Dh17.4m and this was fully provided for before the bank closed its 2012 accounts,” he said.
“The bank can confirm none of its customers suffered any financial loss as a result of this fraud.
“We are given to understand that the overall fraud encompassed a number of banks, not only in the Middle East but in the US and other countries. The incident relates back to events in December 2012 and involved the bank’s service provider in India.”
RAKBank’s cards were compromised in December last year, allowing the criminals to make more than 4,500 ATM transactions in about 20 countries around the world.The bank, one of the biggest names in consumer banking in the UAE, lost about $5m to the fraud.The Omani lender BankMuscat was hit in February and alerted the public within days that it had lost $39m. But RAKBank has not previously released details of the loss.
“In the place of guns and masks, this cybercrime organisation used laptops and the internet,” said US attorney Loretta Lynch.
“Moving as swiftly as data over the internet, the organisation worked its way from the computer systems of international corporations to the streets of New York city, with the defendants fanning out across Manhattan to steal millions of dollars from hundreds of ATMs in a matter of hours.”
The gang laundered the proceeds through banks in Miami and with purchases of Rolex watches, a Mercedes SUV and a Porsche Panamera.
Seven of the eight people named in the complaint have been arrested. The eighth man charged, Alberto Yusi Lajud-Pena, the alleged ringleader of the cell who went by the aliases “Prime” and “Albertico”, was reportedly murdered in the Dominican Republic last month.
US authorities were able to make the arrests with the help of MasterCard, the two banks and authorities in 16 countries.
“If convicted, the defendants face a maximum sentence of 10 years’ imprisonment on each of the money laundering charges and 7.5 years on the conspiracy to commit access device fraud charge, restitution, and up to $250,000 in fines,” the US attorney’s office said.
ghunter@thenational.ae
* With Reuters
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Brief scores:
England: 290 & 346
Sri Lanka: 336 & 243
Tottenham's 10 biggest transfers (according to transfermarkt.com):
1). Moussa Sissokho - Newcastle United - £30 million (Dh143m): Flop
2). Roberto Soldado - Valencia - £25m: Flop
3). Erik Lamela - Roma - £25m: Jury still out
4). Son Heung-min - Bayer Leverkusen - £25m: Success
5). Darren Bent - Charlton Athletic - £21m: Flop
6). Vincent Janssen - AZ Alkmaar - £18m: Flop
7). David Bentley - Blackburn Rovers - £18m: Flop
8). Luka Modric - Dynamo Zagreb - £17m: Success
9). Paulinho - Corinthians - £16m: Flop
10). Mousa Dembele - Fulham - £16m: Success
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Recipe
Garlicky shrimp in olive oil
Gambas Al Ajillo
Preparation time: 5 to 10 minutes
Cooking time: 5 minutes
Serves 4
Ingredients
180ml extra virgin olive oil; 4 to 5 large cloves of garlic, minced or pureed (or 3 to 4 garlic scapes, roughly chopped); 1 or 2 small hot red chillies, dried (or ¼ teaspoon dried red chilli flakes); 400g raw prawns, deveined, heads removed and tails left intact; a generous splash of sweet chilli vinegar; sea salt flakes for seasoning; a small handful of fresh flat-leaf parsley, roughly chopped
Method
▶ Heat the oil in a terracotta dish or frying pan. Once the oil is sizzling hot, add the garlic and chilli, stirring continuously for about 10 seconds until golden and aromatic.
▶ Add a splash of sweet chilli vinegar and as it vigorously simmers, releasing perfumed aromas, add the prawns and cook, stirring a few times.
▶ Once the prawns turn pink, after 1 or 2 minutes of cooking, remove from the heat and season with sea salt flakes.
▶ Once the prawns are cool enough to eat, scatter with parsley and serve with small forks or toothpicks as the perfect sharing starter. Finish off with crusty bread to soak up all that flavour-infused olive oil.
Results
6.30pm Madjani Stakes Rated Conditions (PA) I Dh160,000 I 1,900m I Winner: Mawahib, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)
7.05pm Maiden Dh150,000 I 1,400m I Winner One Season, Antonio Fresu, Satish Seemar
7.40pm: Maiden Dh150,000 I 2,000m I Winner Street Of Dreams, Pat Dobbs, Doug Watson
8.15pm Dubai Creek Listed I Dh250,000 I 1,600m I Winner Heavy Metal, Royston Ffrench, Salem bin Ghadayer
8.50pm The Entisar Listed I Dh250,000 I 2,000m I Winner Etijaah, Dane O’Neill, Doug Watson
9.25pm The Garhoud Listed I Dh250,000 I 1,200m I Winner Muarrab, Dane O’Neill, Ali Rashid Al Raihe
10pm Handicap I Dh160,000 I 1,600m I Winner Sea Skimmer, Patrick Cosgrave, Helal Al Alawi
