A massive hole was revealed in the Dutch banking and payment system yesterday. Accompanied by a book release today, the author was on all the talk shows here last night explaining how to transfer millions.
Best part, no hacking skills required!
Here's how it works: In the dutch banking system, it's possible to set up an automated transfer with any company that has been provided with software by their bank that enables the auto-payments. Very similar to what you can do with a credit card account, except the amount you cab transfer is only limited by funds available!
Normally you as a customer would receive a one time power of attorney to the company for periodic payments, which the company can start making once they have the banking software installed.
One catch, there's no feedback loop between the power of attorney and the bank tranfers. In other words, the transfers can start even if the POA hasn't been signed or was never even agreed to!
Interpay, the company responsible for all wire-banking (credit cards, debit cards, bank transfers etc) admits a POA isn't needed for the actual transfer to take place, but says 'siphoning the money' to foreign accounts is difficult and consumers have absolutely no need to worry.
My wife's cosmetics company LaPaay has such software and I gave it a whirl last night. I was able to transfer $50k from my own accounts to her company account without any prior agreements!
I think this sort of financial transaction iereasonably unique to the Netherlands and other European nations, so it probably won't work in The States.