Citigroup Hack Leads to $2.7M Consumer Losses

By: Absolute Team | 7/16/2011

As this Time illustration attests, the hack attack just keeps growing. And so do the losses.

Citigroup reported in June that hackers had breached the bank's network and gained access to the data of hundreds of thousands of bank card customers. The breach affected 1% of their customer base or approximately 210,000 customers. According to a more recent report, customer losses from this hack have reached $2.7 million.

The latest information has it that about 3,400 customers have suffered losses amounting to this $2.7million amount since the breach, which took place in May. From the article:

Citigroup announced the data breach on June 9 and said six days later that “data that is critical to commit fraud was not compromised,” including Social Security numbers, birth dates and card expiration dates and security codes.

But the hackers did obtain card numbers, account names and emails that could have been used with resources that were improperly obtained through other means to cause losses, one person familiar with the breach said.

Although we often hear of fraud, it's not often we hear confirmed reports of multiple points of data being used to commit the fraud amounting in the loss of millions of consumer dollars.

Financial Services