[HN Gopher] Hackers threatening to publish a stolen sanctions an...
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       Hackers threatening to publish a stolen sanctions and financial
       crimes watchlist
        
       Author : coloneltcb
       Score  : 73 points
       Date   : 2024-04-18 17:09 UTC (5 hours ago)
        
 (HTM) web link (techcrunch.com)
 (TXT) w3m dump (techcrunch.com)
        
       | ghostpepper wrote:
       | It's an interesting perspective for the LSEG to say
       | (paraphrasing) "we maintain a sensitive database that we gave to
       | a third party (presumably with some amount of vetting, since the
       | data is sensitive) and that third party did not adequately secure
       | it, therefore this is not a security lapse on our part"
       | 
       | I'm not sure if I buy it.
        
         | lazide wrote:
         | Pass-the-buck is the oldest game in the book.
        
         | meragrin_ wrote:
         | If the hackers phished the customers of the third-party and
         | used their accounts to scrape the information in some way,
         | would you consider that a security lapse on LSEG's part?
        
       | Havoc wrote:
       | Bit of a nothingburger.
       | 
       | The whole point of world-check as a service is that you can
       | access it. This is not exactly info locked away in a vault.
       | 
       | Sucks for them as a business and perhaps some interesting
       | connections/stats can be gleaned from having the whole thing as a
       | unit for analysis...but meh.
        
       | pseingatl wrote:
       | Is there some reason why these records should not be public?
       | Making them public would lead both to greater accuracy and their
       | more widespread use keeps criminals out of the financial systems.
        
         | kube-system wrote:
         | This is a list made up of other lists, and some of those lists,
         | like sanctions lists, are public.
         | 
         | e.g.: https://ofac.treasury.gov/specially-designated-nationals-
         | and...
         | 
         | > their more widespread use keeps criminals out of the
         | financial systems.
         | 
         | Governments already have solved this by _requiring_ banks to
         | use lists like these (or similar subsets of these) where
         | desired.
        
         | psychlops wrote:
         | I'm not seeing a problem with them going public either. The
         | article even states that there are innocent people on the list.
         | It would be nice to know so they can contest and clear their
         | data off the list.
        
           | kube-system wrote:
           | > It would be nice to know so they can contest and clear
           | their data off the list.
           | 
           | That can be done here:
           | 
           | https://www.lseg.com/en/risk-intelligence/screening-
           | solution...
        
             | lazide wrote:
             | Only if you know you're on it and why though, right?
        
               | kube-system wrote:
               | That's the case whether or not it's public.
        
           | mrangle wrote:
           | Why is the identity of a wrongly accused person, formerly
           | kept private, your business?
        
         | cedws wrote:
         | As I understand, in the finance world lists like this are
         | considered classified because knowing you're on one, or the
         | circumstances that put you on one could help you/others
         | circumvent the measures. Fraud detection works like this - if
         | you're under investigation, you won't know about it, you'll
         | have some vague issue with your bank account.
        
           | mb5 wrote:
           | This is where the article is insufficiently clear. Lists of
           | people who are under investigation for fraud is definitely
           | something banks keep quiet, for the reason you mentioned. But
           | as a sibling comment says, sanctions lists are public, as are
           | records of people convicted of relevant crimes in most (all?)
           | jusrisdictions. So what kind of lists are these? Because the
           | article's line about "individuals who were sanctioned as
           | recently as this year" is hardly exciting - the UK sanctions
           | list has people sanctioned today, 18 April.
           | 
           | https://www.gov.uk/government/publications/the-uk-
           | sanctions-...
        
             | PeterStuer wrote:
             | These are hundreds of lists from all over the world updated
             | a few times a day. They are very diverse ranging from known
             | terrorist fronts to things as benign as a locally elected
             | politician. Assuming everyone mentioned in the DB was
             | somehow involved in fraud or criminal activity would be a
             | gross misrepresentation. Financial institutions and other
             | businesses use them in KYC/AML, but also for flagging
             | accounts that might need some white glove /red carpet
             | treatment as mistakes made on those could lead to bad
             | press.
        
             | somelamer567 wrote:
             | Fairly sure that anything super sensitive like that won't
             | make it into the World-Check datafile. The records in there
             | are mostly already public information if you know where to
             | look
        
           | nradov wrote:
           | This is private commercial data distributed under license. It
           | isn't classified as Secret by the UK or US government.
        
         | mrangle wrote:
         | Because the people in question aren't necessarily criminals.
         | You should be careful of how easily that you may be hypnotized
         | by language, including but not exclusive to accusations.
        
           | johnmaguire wrote:
           | I think there are a lot of non-criminals who would LOVE to
           | know they are on the list.
        
             | fullspectrumdev wrote:
             | As I said in another comment: they respond to GDPR
             | requests.
             | 
             | I found out I'm on their list, as have a few other friends.
        
           | somelamer567 wrote:
           | PEPs -- Politically Exposed Persons, like family of
           | politicians. Businesses with KYC screening requirements
           | beyond sanctions and criminal convictions might care about
           | it, because they fear bad media coverage, for examples
        
         | PeterStuer wrote:
         | Worldcheck is an aggregator of lists for political sensitive
         | persons and anti money laundering. Many of the lists they
         | aggregate are public.
        
         | nradov wrote:
         | LSEG is a data vendor. They don't want to make their data
         | public because they charge for it. Much of the original raw
         | data that they aggregate is already public.
        
           | somelamer567 wrote:
           | They're charging for the effort of collecting and curating it
           | all.
        
         | TacticalCoder wrote:
         | > Making them public would lead both to greater accuracy and
         | their more widespread use keeps criminals out of the financial
         | systems.
         | 
         | What about arresting criminals for their actual crimes instead
         | of having a gigantic, worldwide, army of bureaucrats inventing
         | sick and sicker KYC/AML rules which do nothing but cost
         | business and honest people time and money?
         | 
         | Estimated worldwide KYC/AML compliance costs: $180bn. For
         | absolutely nothing: nothing of value is produced. Pure Brazil
         | (the movie) style redtape pointless documents, processes, code,
         | etc. To freeze (not seize: just freeze, some of it shall be
         | unfrozen after more pointless public servants shall waste time
         | producing nothing of value)... $12 bn. 15x less than the
         | estimated cost.
         | 
         | That's totalitarism for you: pure insanity created by sick
         | minds and admired by sicker minds.
        
           | kube-system wrote:
           | That is because money can cross lines on political maps but
           | police jurisdictions often do not.
           | 
           | Also, criminals can hide, but bank accounts are always
           | maintained at the bank.
        
         | somelamer567 wrote:
         | Much of the data is indeed public. LSEG have analysts going
         | around all the websites of major government entities publishing
         | sanctions lists to update their database. If you're politically
         | exposed or get mentioned in the media for being convicted of
         | fraud and it's public knowledge, it'll gets pulled in too.
         | 
         | LSEG get sued by people all the time, so they document and
         | justify everything that goes into the file. There are very good
         | legal reasons to do so.
        
       | mrangle wrote:
       | "Hackers" want to publicly snitch on those with supposed "links"
       | to financial crime and sanctions. Not convictions nor actual
       | sanctions, but links. Like the same brand of hacker that is all
       | in on bitcoin, anarchy, etc? Hackers are shaming agents in
       | service of the State Department now? Sell us another one.
       | 
       | People should not be de-personed because a bank thinks that they
       | are risky. The population, in general, needs to stop pretending
       | that anonymous "hackers" are legitimate justice advocates instead
       | of the likely state actors that they are. Unless they want
       | anything of the sort to be co-opted and then utilized against
       | them.
        
         | nradov wrote:
         | Hackers come in many different flavors. It's entirely possible
         | that this group is state sponsored. Would that really change
         | anything?
         | 
         | I don't see anyone seriously claiming that leaking this data
         | would deliver any sort of legitimate justice.
        
           | mrangle wrote:
           | My point was that it should change public support for their
           | intended data release.
           | 
           | Because no one should be ok with the State anonymously
           | doxxing uncharged targets, let alone people who are merely on
           | lists as being known to have "links".
           | 
           | I assume that such an action would be to create both leverage
           | and punishment, outside of what legal constraints would
           | otherwise allow.
           | 
           | The nature of democracy is such that the government can't
           | punish individual citizens via stealth practices, and the
           | citizenry can't be ok with it.
           | 
           | Generally speaking, this type of thing would have been vetted
           | by a journalist. Who would have acted as the final release
           | valve, after verifying that the source was legitimate and
           | not, for example, the government itself. While keeping the
           | source confidential, and vetting the information for the
           | ethics and justification for its release.
           | 
           | But today it would be foolish to trust most journalists with
           | that process. And so the public are left with the judgement
           | as to the possible motivations, identities, and probable
           | legitimacy of the actions of anonymous sources who, for
           | whatever reason, aren't first releasing to journalists.
           | Backstops removed, such an action represents a lot of social
           | risk and begs questions.
        
         | nimbius wrote:
         | These are KYC checks so the information is very interesting if
         | you're the average joe.
         | 
         | the US Bank Secrecy act prohibits you from ever knowing the
         | details of a SAR, or suspicious activity report. there are
         | _criminal_ punishments if a bank were to tell you a SAR had
         | even been filed against you.
         | https://en.wikipedia.org/wiki/Suspicious_activity_report
         | 
         | if this agency does not capitulate to the demands of hackers,
         | then 5.3 million people would suddenly know their SAR/KYC
         | status. it would do quantifiable harm to the prosecution of
         | financial crimes globally.
        
           | johnmaguire wrote:
           | From your link:
           | 
           | > A 2020 Bank Policy Institute study found that American SARs
           | elicited a response from law enforcement in a median of 4% of
           | reports, and that a tiny subset of those responses resulted
           | in arrest and conviction, suggesting that 90% to 95% of SARs
           | reports were false positives of unlawful activity.[5]
           | 
           | Anecdotally, I've heard of many people having issues with
           | this system.
           | 
           | I find the claim that "it would do quantifiable harm to the
           | prosecution of financial crimes globally" technically true
           | (it is quantifiable), but to be overall exaggerated as to its
           | actual harm.
        
             | kube-system wrote:
             | That's not surprising. There are plenty of suspicious
             | things that aren't illegal. Moving $10k in cash around can
             | often be legal, but could trigger a SAR. SARs aren't just
             | supposed to catch illegal things. They catch suspicious
             | things, and illegal things will be a small subset of those.
        
               | FireBeyond wrote:
               | Is it just cash? I was doing some freelancing and as I
               | invoiced each month, I'd often generate a cashier's check
               | from my business checking account to my personal
               | checking, that varied between 9-12K a month. I was
               | "warned" by my credit union about this and that there
               | could be flags raised, but my response was, "what am I
               | meant to do? That number is derived from my consulting
               | hourly rate and the work I put in each month."
        
               | kube-system wrote:
               | No, I just picked one example, there are a lot of things
               | that could trigger it
        
               | reaperman wrote:
               | I believe the way to avoid SAR here is to file for an
               | LLC, then create a business account, then pay yourself
               | whatever wage via direct deposit for 1099/W-2/capital
               | divestment payments. I'm not saying that you _should_
               | have to do that, but I believe it 's the best way to
               | avoid SAR.
        
           | FireBeyond wrote:
           | KYC checks have in the past resulted in me being unable to
           | open a bank account due to a "discrepancy" between my SSN and
           | my DOB (due to me being an immigrant).
           | 
           | The flip side of your comment is that 1 in 60 (including
           | minors) people in the USA are on a watch list for financial
           | crime.
           | 
           | I think more worrying as a society is not the risk to
           | prosecution of financial crimes (this list being uncovered
           | does not erase evidence of previous or current financial
           | crimes in progress) is how those 1 in 60 people got to be on
           | such a list in the first place.
        
             | kube-system wrote:
             | That doesn't really sound like a lot, in the scheme of
             | things. Almost 1 in 3 Americans (adults) have been arrested
             | for a felony crime. (edit: _have a criminal record_ )
        
               | marcosdumay wrote:
               | > Almost 1 in 3 Americans (adults) have been arrested for
               | a felony crime.
               | 
               | That one is absurd. How do your governments (on all
               | spheres) keep up? Do they even know who is arrested?
        
               | kube-system wrote:
               | They... keep records? It's not like they have to memorize
               | it lol
        
               | marcosdumay wrote:
               | The keep searchable records so that criminals get to see
               | a judge when their sentence finishes?
               | 
               | Or they keep local records that nobody looks at or know
               | if they are correct?
               | 
               | Because if it's the first one, kudos for whoever created
               | that system. Plenty of countries fail with way less
               | prisoners/inhabitant.
        
               | Retric wrote:
               | I think you're misremembering that statistic. 1/3 of
               | Americans have some form of criminal record, but not all
               | crimes are felonies, anyone with a traffic ticket counts.
               | 
               | https://www.ncsl.org/civil-and-criminal-justice/criminal-
               | rec...
        
               | kube-system wrote:
               | The 1/3 number I'm citing counts arrests without
               | convictions
               | 
               | https://www.politifact.com/factchecks/2017/aug/18/andrew-
               | cuo...
               | 
               | But on a second reading of that page, I think you're
               | right, "criminal record" is more accurate. My point is
               | the same, either way -- it's a lot of people.
        
               | recursivecaveat wrote:
               | Wow, I found this hard to believe. I still couldn't find
               | the figure of % arrested for a felony, but I found a
               | reliable looking source that 8% of adults have been
               | convicted of one in 2010, so I find it very believable
               | now.
               | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5996985/
        
               | mistrial9 wrote:
               | that is false information
        
         | krunck wrote:
         | If I was incorrectly "linked" to some financial crimes I'd like
         | to know about it. If others make decisions based on this data
         | that affect me personally then I'd like to know about it. I
         | have to pay to know about it. But any powerful/wealthy person
         | who has done things that could get them on the list probably
         | have the means to see the list for themselves.
        
           | fullspectrumdev wrote:
           | Send a data access request (under GDPR if you are in the EU).
           | 
           | I did so a few years ago and found I'm on their shit list :)
        
             | redavni wrote:
             | I'd be wondering if sending the request was enough to get
             | you on the list.
        
         | Terr_ wrote:
         | I'm confused, is this a restatement of "call the bad ones
         | crackers not hackers" debates of a couple decades ago?
        
       | PeterStuer wrote:
       | A Worldcheck sub gives you access to all the lists. How is this
       | "hacking"?
        
         | kube-system wrote:
         | This part:
         | 
         | > illegally obtained from the third party's system
        
           | pc86 wrote:
           | That makes it theft but doesn't make it hacking.
        
             | kube-system wrote:
             | Legally speaking, in many/most places, taking any data
             | you're not supposed to take from a computer system is
             | 'hacking'. This is a story about a hacking group that took
             | data they're not supposed to have. I don't see many
             | scenarios in which it wouldn't qualify.
        
           | PeterStuer wrote:
           | I've integrated worldcheck for AML in financial service
           | companies. Just like any other consultant doing this type of
           | work, I could have walked out the door with a full copy of
           | the DB on my laptop or a USB stick any time I wanted. Doing
           | that might have made me a 'pirate' or a thief, but rest
           | assured no 'hacking' would have been involved.
        
             | kube-system wrote:
             | The data was stolen by a hacking group, not employees
        
         | somelamer567 wrote:
         | The data goes stale after a while. The real value of World-
         | Check, is that it's constantly updated, and if you're using
         | LSEG's KYC screening platform, you get notified in real time as
         | soon as anybody you've screened gets a new hit or update in the
         | datafile. That covers you when good customers turn bad.
        
           | PeterStuer wrote:
           | True in theory but compliance is not a realtime businesses
           | process. In my days as I remember we got updates 3 times a
           | day which was more than enough (many if not most
           | risk/compliance processes either run once every 24 hours
           | overnight, or are triggered at events such as customer
           | onboarding.)
        
       | Rickasaurus wrote:
       | We used WorldCheck data at my last startup, it was the best in
       | the business at the time. High quality groomed data, well tagged,
       | with an actual timeline for each entity that explains why they're
       | in there. Absolute top notch.
        
         | pc86 wrote:
         | Yeah if you don't care about the false positives I'm sure it
         | was great.
        
           | somelamer567 wrote:
           | To use the World-Check datafile, you need decent tooling to
           | go with it. You can either build your own, or use theirs.
           | That said, it's only as good as the analysts using the tools
           | as well as the consultants configuring it. It's a hard
           | problem.
           | 
           | Source: worked as a developer on World-Check One for ten
           | years.
        
         | fullspectrumdev wrote:
         | From reviewing my own record there - it contained some factual
         | errors.
         | 
         | Friends reported the same.
        
       | faserx wrote:
       | so what's the big deal? (barely) every bank in the world has
       | access to the world check database and there is no "secret data"
       | in it. Just a collection of public records...
        
         | dcan wrote:
         | I wouldn't consider passport, social security, or bank account
         | numbers "public records".
        
           | faserx wrote:
           | Unless it is a different subscription, I've never seen such
           | information in the worldcheck database.
        
       | fullspectrumdev wrote:
       | Oh, I'm in that database!
       | 
       | You might be also - if you are EU based, send them a request
       | under GDPR.
        
       | BeFlatXIII wrote:
       | > financially motivated criminal hacking group
       | 
       | Sad! This information should be published because it's in the
       | public's interest, not because someone didn't pay up.
        
       | barfbagginus wrote:
       | Publish the list! I wanna show people I'm on it!
       | 
       | You're not paranoid if they're actually after ya!
        
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