Citibank an arm of Citi Corp, has suffered a data breach in the form of 7-11 Store installed ATM machines which were broken into by hackers who got away with millions according to the report on Yahoo News. The three hackers have been found, arrested and are currently under custody as the case is further studied and discussed in the courtroom.
The problem happened when these hackers got through third-party computers who handled debit card account transactions taking all the information they needed that was enough for them to engage in online transactions without the need for physical contact with any ATM machine.
The problem is another case of lax data security which in terms of ATM pins are said to be the most secure of all bank information systems for the potential is horrendous in terms of loss.
“PINs were supposed be sacrosanct — what this shows is that PINs aren’t always encrypted like they’re supposed to be,” said Avivah Litan, a security analyst with the Gartner research firm. “The banks need much better fraud detection systems and much better authentication.”
This shows that even with the repetitive problems and incidents of identity theft not everybody is listening and taking action to protect their information, as in the case of Citi Corp., their third party providers should have had ample measures such as encryption, and redundant security measures to prevent such incidents from even happening. Citi Corp., being one of the biggest multi-national banks with accounts all over the world should have check and balance systems that ensures customer information is safeguarded from such intrusions which in this case is going to cost them millions of dollars. The company has relied so heavily on systems based on Microsoft Software technology which has received continuous attacks and this is just another addition to the types of attacks they suffer from hackers.