website statistics

The trick made use of a tiny loophole in Citigroup's electronic payment system.
1 Star2 Stars3 Stars4 Stars5 Stars (Rate This)
Loading...

ATM frauds are not that uncommon but a recent ATM fraud, that was discovered, shows just how intelligent and well-concocted they can be. A group has now been nabbed for defrauding $1 million from Citigroup through a simple ATM trick.


ATM fraud

The fraud was perpetuated by a group of people, carried out in California and Nevada. It comprised of withdrawing exactly same sums of amounts from multiple ATMs in different locations, from the same bank account. The multiple cash requests were made within the same 60-second interval.

A loophole in the electronic payment system of Citigroup made the system treat all these transactions as duplicates of one and the same transaction. As a result, the group was able to withdraw huge sums of money from their bank accounts, far greater than the actual sum that had been deposited.

According to the prosecutors who are now trying the alleged fraudsters in a federal case, “In order to obtain the case, the conspirators exploited a loophole in Citi’s account security protocols, which caused Citi’s account reconciliation systems to treat identical, near-simultaneous withdrawals as duplicates of a single withdrawal from an individual Citi Checking account.”

With the help of the fraudulent scheme, Ara Keshishyan and his team of 13 people, was able to nick off a total of $1 million from Citigroup which it then spent on gambling and other perks in Las Vegas. Now that the fraud has been uncovered, the defendants may be sentenced to five years in prison and up to $250,000 in fine. The ring leader, for his additional counts of fraud, may be in for 30 years and up to $1 million fine.

Source: FBI

Courtesy: Arstechica

Buy Cheapest Related Product From Amazon.com


Illiterate Ethiopian Kids Hacked Android Tablet Without Anyone’s Help!

[Tutorial] How To Move Application To Memory Card On Android
You can also press the left/right arrow key on your keyboard to go to previous/next post
  On October 31, 2012(3 years, 8 months ago.)

You May Also Like:

What Do You Think?

Leave a Reply




Loading Facebook Comments ...

FTC Disclosure: Some of the links of this website are "affiliate links." This means if you click on the link and purchase the item, we will receive an affiliate commission.


Recent Search

Recent Tutorials

CiderTV is a great alternative to control Apple TV from the Notification Center. Check out this tutorial to set up CiderTV on your iPhone.
Are you annoyed by the split screen mode on the iPhone 6 Plus or 6s Plus? Check out this quick tutorial to turn off split screen feature.
If you could not wait to installed the iOS 10 beta version on you iPhone and now struggling for the errors, then this tutorial is for you.
Siri might not understand the question you asked. But you can use Siri by editing the text that you asked & it will give an updated answer.
Perhaps, you are new Apple user and you might have no idea how to change name of your iPhone. Check out this tutorial to change the name.
Check out this tutorial to lock Android phone using PIN code, Password or Pattern. Following the easy steps, you can secure your smartphone.
If you could not figure out yet, how to save and send GIF from your iPhone, then this tutorial is just for you.
Google released 'Ambient Display' feature with Android 5.x Lollipop. Check the tutorial to know how to turn off Android’s Ambient Display .
Have you recently got your 3D Touch iPhone 6s and struggling to delete apps? Go through the tutorial to learn how to delete or move the apps.
Just read this tutorial by yourself and from now on, we will show you, how you can make your iOS device read text loudly for you.
Close You Have To Login
User:
Pass:
Login With »Login With TwitterLogin With Facebook