Fraudster Made £100K from Online Banking Bug
An online fraudster has been jailed after pocketing nearly £100,000 by exploiting a glitch in his online banking platform.
James Ejankowski, 24, defraud the Clydesdale Yorkshire Bank of more than £99,000 in December last year, according to the Teeside Gazette.
It was claimed at Teeside Crown Court that Ejankowski discovered a bug in the portal whereby he could transfer sums of money between current and savings accounts without the bank knowing – as long as he did so between the hours of midnight and 1am.
That meant he could ensure a credit balance in one account for that hour even if there was actually no money there.
Ejankowski is said to have transferred over £53,000 to his partner’s account and over £1300 to his father-in-law, whom he told he’d won the money on a scratchcard.
Some of the funds were reportedly used to pay off debts, given as gifts to family members, and to buy a Range Rover and BMW, as well as several facial tattoos.
When he finally handed himself in to police on Boxing Day he claimed there was just £40 left.
Ejankowski of Clarence Road, Bridlington, was jailed for 16 months after he pleaded guilty to fraud and his partner Charlotte Slater was handed six months suspended for 18 months with 30 days “rehabilitation activities” after admitting acquiring criminal property.
The jail term probably came as a result of Ejankowski having previously been convicted in 2015 for fraud related to selling items on the internet, for which he reportedly served community punishment.
The bank has apparently now fixed the online loophole which enabled the fraud.
Online banking fraud actually fell between 2015 and 2016, according to Financial Fraud Action UK. The payment industry body revealed earlier this year a drop of 24% to just £102m, while the number of cases increased slightly, by 2%.
Source: Information Security Magazine