Security Briefing: How to break a bank
A banker is headed to jail for operating a fractional reserve, but not the kind you might expect. Learn more in this week's briefing...
Former CEO gets 24 years in jail after falling for crypto scam, destroying bank
What happened when a banker decided to do full-on degen? He ended up behind bars.
Heartland Tri-State Bank was a community bank in rural Kansas with around $139 million in assets as of 2023. Beginning in May of that year, then-CEO Shan Hanes proceeded with $47 million in unauthorized wire transfers out of the bank.
What was he doing with the money? Buying crypto. It was part of a pig butchering scam, where an unsuspecting investor is swindled into escalating their financial commitment under the pretense of future success.
The $47 million Hanes wired out was lost and caused the bank to fold, according to court democrats. Authorities announced Monday that Hanes pleaded guilty to one count of embezzlement and was sentenced to 293 months in prison.
“Hanes’ greed knew no bounds," said U.S. Attorney Kate E. Brubacher in a statement. "He trespassed his professional obligations, his personal relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions.”
🔑 Key Insight: If it seems too good to be true, it probably is. There are several red flags to look out for in pig butchering and other types of scams. The below article covers them in detail. Learn how to spot a scam.
Ron Stoner
Data broker in massive breach posted its own database passwords on its website
On Aug. 12, the ironically named data broker National Public Data confirmed it had experienced a major security breach of Americans' personally identifiable information dating back to 2023.
It's a treasure trove of data: names, email addresses, social security numbers, phone numbers, and mailing addresses. While there's been some questions about the accuracy of the total data set floating around, Troy Hunt, the founder of data watchdog Have I Been Pwned published a deep dive confirming the authenticity of some data.
Adding insult to injury is some reporting on how the breach may have come to be. According to Krebs on Security, a National Public Data sister property with access to the records in question hosted a file on its website containing the credentials to its back-end database.
🔑 Key Insight: You can check if you affected by the breach at npdbreach.com. If you are affected, it's recommended that you freeze your credit at all three major bureaus.
Share Casa with a friend and earn rewards
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John Tinkelenberg
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