School boards hit with cash-stealing Trojan

By Robert McMillan, IDG News Service |  Security, FBI, fraud Add a new comment

The U.S. Federal Bureau of Investigation is probing a rash of reported online computer intrusions that have resulted in hundreds of thousands of dollars being stolen from school districts in Illinois.

FBI investigators are working on a computer intrusion case at the Crystal Lake School District in Crystal Lake, Illinois, said Ross Rice, a spokesman with the FBI's Chicago office. But several other school districts also believe that they have been hit by the same malicious software, Rice said.

The FBI believes that the Clampi virus, already associated with a rash of banking thefts throughout the U.S., may be to blame, Rice said.

Rice declined to provide more information on the case because it is still under investigation, but local reports say that as much as US$350,000 may have been taken from the Crystal Lake District alone. The district's superintendent, Donn Mendoza, did not return a call seeking comment for this story.

Three Illinois school districts are thought to have been hit over the summer, but other school boards nationwide have been targeted by the scam.

Designed to steal banking credentials from its victims, Clampi has been an increasingly thorny problem for small businesses and government agencies in the U.S. Investigators say organized criminal gangs based in eastern Europe are moving millions of dollars per day out of the U.S., using Clampi to access bank accounts and then transferring money to unwitting "money mules" who then transfer the money offshore.

The mules typically believe they are helping process payroll for a legitimate company.

Late last year, criminals made off with more than $440,000 after hitting the Western Beaver County School District in Pennsylvania with a similar scam. Western Beaver sued its bank, a small regional institution called ESB Bank, after it was held accountable for the fraud.

ITworld LIVE

SecurityWhite Papers & Webcasts

Webcast On Demand

Seven Deadly Sins of Cloud Security (Video)

As cloud computing gains popularity, too few people are aware of the security threats that are emerging. In this short video, experts from HP discuss the latest cloud security threats and explain measures to help overcome them. Hear about the seven deadly sins of cloud security and learn how to avoid becoming a victim of poor security in your cloud environment.Intel and the Intel logo are trademarks of Intel Corporation in the U.S. and/or other countries.

Sponsor: HP & Intel

White Paper

Establishing a Strategy for Database Security is No Longer Optional

The options for securing increasingly valuable databases are very broad and deep, and can be confusing. This research provides an overview of three categories of controls that should be implemented to ensure that enterprise data is protected in the most efficient and effective manner.

White Paper

Database Activity Monitoring Is Evolving

Read the analyst report and learn how you can leverage the core capabilities of a DAP solution for better database security.

White Paper

Protecting Against Database Attacks and Insider Threats: Top 5 Scenarios

Read this new eBook to learn the top five scenarios and essential best practices for preventing database attacks and insider threats.

Webcast On Demand

Distributed Database Security with Real-time Monitoring

View this demo and learn how IBM InfoSphere Guardium database activity monitoring can help protect your sensitive data in distributed DBMS environments with a holistic approach to data security and compliance.

Sponsor: IBM

See more White Papers | Webcasts

Ask a question

Ask a Question