Insider data theft costs Bank of America $10 million

IDG News Service - A Bank of America insider who sold customer data to criminals cost the bank at least US$10 million in losses.

Bank of America began notifying customers of the incident recently, but is not providing many details of the case which is still under investigation. The theft, "involved a now former associate who provided customer information to people outside the bank, who then used the information to commit fraud against our customers," said Bank of America spokeswoman Colleen Haggerty, in an email message.

The bank lost at least $10 million to the criminals, said James Kollar, a special agent with U.S. Secret Service in Los Angeles. "There was information that was coming from the bank to the outsiders," he said. "It was basically a check scam."

About 95 members of the loosely affiliated criminal gang behind the alleged fraud, including the bank employee, were swept up in a February 2011 law enforcement action, Kollar said. However, the names of the accused have not been released, and the court case is under seal as the investigation continues.     Read More