06/18/2008

Associated Press

The FBI was meeting with police and bank officials Wednesday to determine how many customers of northern Indiana financial institutions had money stolen by hackers in Spain, Russia, Nigeria and the Ukraine.

"We're trying to determine what we have here," said Special Agent Wendy Osborne, an FBI spokeswoman.

The FBI got involved on Monday when it received a report from Burns Harbor police, she said.

St. Joseph County Police Department spokesman Sgt. Bill Redman said at least eight financial institutions in the county had reported fraudulent transactions between Saturday and Wednesday. But he said other financial institutions could be involved.

"Everybody definitely needs to be checking their bank statements," Redman said.

Teachers Credit Union had at least 150 victims, 1st Source Bank had 75 and Notre Dame Federal Credit Union had 31. Most withdrawals were for less than $200, but at least one person reported losing nearly $4,000. It is not known how much total money was stolen.

Officials at the financial institutions said customers won't be held liable for the losses.

Bank officials said the victims they know of appear to have all used 1st Source Bank ATMs during the first 10 days of May. James Seitz, 1st Source senior vice president, said officials from his bank met with officials from other financial institutions on Wednesday to discuss the situation.

"As we're piecing this puzzle together, it appears that there may be a common thread," Seitz said.

A security consulting firm alerted 1st Source about a computer breach on May 12. The bank shut down its computer system and contacted authorities. Two weeks ago, 1st Source sent letters to customers asking them to monitor their accounts for suspicious activity.

There was no sign of illegal activity until Saturday.

"They're smart. They did it on a weekend when a lot of our customers couldn't contact their financial institutions," Seitz said. "This is a pretty sophisticated group of bad guys."

Redman said the St. Joseph County Police Department contacted the FBI on Tuesday seeking help.

"Obviously federal agencies are going to have more resources and be able to help a little bit more than we will," Redman said.