{"id":7064,"date":"2014-09-19T06:45:14","date_gmt":"2014-09-19T13:45:14","guid":{"rendered":"http:\/\/www.infosecurity.pro\/?p=7064"},"modified":"2019-04-20T16:24:34","modified_gmt":"2019-04-20T16:24:34","slug":"2-7m-schools-first-credit-union-it-embezzlement","status":"publish","type":"post","link":"https:\/\/www.infosecurity.pro\/?p=7064","title":{"rendered":"$2.7M Schools First Credit Union IT embezzlement"},"content":{"rendered":"<p>\t\t\t\t<![CDATA[\n\n<p>In a four-count mail and wire fraud case, David Lugo, Vice President of Information Technology&nbsp;(IT) has&nbsp;signed a plea agreement which outlines how&nbsp;he&nbsp;embezzled nearly $2.7 million in IT funds.&nbsp; He apparently used funds to pay for his daughter&#39;s USC tuition, new cars,&nbsp;lavish vacations and jewelry, and cosmetic dental work.<img decoding=\"async\" alt=\"Schools First embezzlement\" src=\"http:\/\/blogs.ocweekly.com\/navelgazing\/assets_c\/2014\/09\/DavidLugoThief-thumb-300x297.jpg\" style=\"width: 201px; height: 195px; float: right;\" \/><\/p>\n\n\n\n\n<p>He&nbsp;initially&nbsp;started as a systems administrator and worked his way to the&nbsp;level of the IT leadership as vice president for his (former) employer SchoolsFirst&nbsp;Credit Union (SFCU.)&nbsp; SFCU&nbsp;is local to Santa Ana, California and&nbsp;has $10 billion&nbsp;in assets and approximately 45 branches.&nbsp; Lupo&nbsp;eventually began to buy unnecessary equipment such as Cisco routers which he would&nbsp;turn around and&nbsp;privately re-sell at a personal profit.&nbsp; Unfortunately, the inventory, effective use, and disposal&nbsp;of these purchases were not adequately monitored.&nbsp; As a precaution, Mr. Lugo later&nbsp;tried to delete his purchasing history from the computing environment.<\/p>\n\n\n\n\n<p>The fraud was only detected a few months ago and eventually reported to the FBI.<\/p>\n\n\n\n\n<p>Mr Lugo is slated to appeart in court on October 6, 2014 and eventually to formally enter a guilty plea.&nbsp; The maximum prison term for this embezzlement is 80 years in prison.<\/p>\n\n\n\n\n<p>Insider threats such as employee theft can manifest under some of these organizational factors:<\/p>\n\n\n\n\n<ul>\n\t\n\n<li>Availability and ease; allowing access to those who don&#39;t need it<\/li>\n\n\n\t\n\n<li>Information\/assets are not adequately labeled, identified, nor inventoried upon purchase, use, decomissioning, or dispoal<\/li>\n\n\n\t\n\n<li>Ability to exit a worksite or expected location while undetected with assets<\/li>\n\n\n\t\n\n<li>An organizational&nbsp;perception that security is lax and theft consequences are minimal\/non-existent<\/li>\n\n\n\t\n\n<li>Rushed deadlines on projects or systems&nbsp;which encourage&nbsp;inadequate consideration or actual protection to assets<\/li>\n\n\n\t\n\n<li>A&nbsp;lack of support for training how to properly protect information\/assets<\/li>\n\n\n<\/ul>\n\n\n]]>\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\t\t\t\t<![CDATA[]]>\t\t<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amazonpipp_noncename":"","amazon-product-isactive":"","amazon-product-single-asin":"","amazon-product-content-location":"","amazon-product-content-hook-override":"","amazon-product-excerpt-hook-override":"","amazon-product-singular-only":"","amazon-product-amazon-desc":"","amazon-product-show-gallery":"","amazon-product-show-features":"","amazon-product-newwindow":"","amazon-product-show-list-price":"","amazon-product-show-used-price":"","amazon-product-show-saved-amt":"","amazon-product-timestamp":"","amazon-product-new-title":"","amazon-product-use-cartURL":"","amazon_featured_post_meta_key":"","_amazon_featured_alt":"","amazon-product-template":"","footnotes":""},"categories":[67,64,65],"tags":[],"class_list":["post-7064","post","type-post","status-publish","format-standard","hentry","category-practices","category-risks","category-vulnerabilities"],"_links":{"self":[{"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=\/wp\/v2\/posts\/7064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7064"}],"version-history":[{"count":1,"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=\/wp\/v2\/posts\/7064\/revisions"}],"predecessor-version":[{"id":7928,"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=\/wp\/v2\/posts\/7064\/revisions\/7928"}],"wp:attachment":[{"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.infosecurity.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}