US Brokerage Houses Hit by ID Theft Fraud

The Register reports that "US-based online brokerage houses have been hit by losses of $22m after an attack by a sophisticated gang of identity thieves."

Customers of TD Ameritrade and E-Trade were taregtted with both brokerage houses have covered customers' losses. The fraud resulted in losses for E-Trade of $18m and $4m for TD Ameritrade.

ComputerWorld adds that "Rather than using key loggers to snatch the bank account credentials of prospective marks, fraudsters targeted account holders of online brokerage accounts. Using hijacked accounts (or fraudulently created dummy accounts) the crooks bought stock in seldom traded stock, artificially inflating its value, before selling shares (bought before the scam kicked off) at vast profit."