Magazine article American Banker

Security Watch

Magazine article American Banker

Security Watch

Article excerpt

Byline: Jeremy Quittner and Daniel Wolfe

Cash Cow

A Connecticut man pleaded guilty to charges that he stole nearly $5 million from Domestic Bank in his role servicing the bank's automated teller machines.

John DeMilo, 42, helped run New England Cash Dispensing Systems, which operates a network of ATMs that carry the Cranston, R.I., bank's brand, PCWorld reported Nov. 9.

In a sharing arrangement, NECDS provided some of the cash to Domestic's ATMs, but systematically shorted Domestic and appropriated its cash to cover its own funds, the article said. The fraud lasted from 2007 to 2010.

DeMilo faces up to 30 years of jail time. He is the second executive to plead guilty in this case since October, PCWorld reported.

Domestic announced Oct. 20 that it was changing its name to Admirals Bank.

Check, Please

A restaurant in Seattle's Capitol Hill section is said to be responsible for the theft of more than 100 credit and debit card numbers.

The Secret Service's Seattle Electronic Crimes Task Force says the likely cause was software, installed at the point of sale, that captured account numbers, according to a Nov. 12 story by KIRO TV.

Though the numbers were stolen in Washington State, the card numbers were used in other states, including Iowa, Indiana and New York, the report said. In many of the cases the fraud was detected early by banks and halted. In others the criminals used debit cards to first access credit card accounts and then to drain savings accounts. The Secret Service did not name the restaurant involved. …

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