Cyber crooks target Omaha gutter firm

Joe Smith never thought his business would be targeted by cyber crooks.

Smith, who operates LeafGuard gutter franchises in Omaha and central Iowa, was wrong.

In late October, Smith nearly lost $50,000 that someone tried to transfer from his company’s bank account to a Russian bank account through “malware,” malicious software designed by cyber criminals to access corporate bank accounts and other confidential information.

Fortunately for Smith, his bank, First Bank of Baldwin, in Wisconsin, was able to reverse the attempted wire transfer and recoup Smith’s money before it reached the overseas account.

Jim Hegarty, president and CEO of the Omaha Better Business Bureau office, issued an alert Tuesday related to Smith’s experience.

The BBB has seen a significant increase in the number of electronic fraud cases executed through malware, Hegarty said, and Smith’s case shows the threat has spread into the Midlands.

“These are complex schemes which are more widespread than previously believed,” Hegarty said.

Before being contacted by First Bank, which asked Smith if he had approved the $50,000 wire transfer and a second $50,000 transfer in $10,000 increments the next day, he had no clue there was an attempt to tap his company’s account.

Had the money not been recovered, the loss would have crippled his franchises financially, Smith said.

“This is real,” Smith said. “One day you get a phone call from your bank telling you you’re out $50,000, and it becomes awfully real.”

Malware scams are run by cyber crooks who recruit employees from the targeted businesses as unsuspecting “money mules,” according to the Better Business Bureau. The employees are instructed to transfer money from the companies, which the crooks portray as their business partners, to overseas “customers.”

The money mules can be targeted in the schemes as well, Hegarty said.

Malware often is installed on the victims’ computers through e-mail attachments, or viruses invisible to the business owner.

If you have questions about malware scams or believe you’ve been a victim of a scam, log onto www.lookstoogoodtobetrue.com or visit the Better Business Bureau at www.bbb.com

Contact the writer:

444-1414, ross.boettcher@owh.com

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