“The Federal Bureau of Investigation warned this week that cyber thieves have stolen approximately $20 million over the past year from small to mid-sized U.S. businesses through a series of fraudulent wire transfers sent to Chinese economic and trade companies located near the country’s border with Russia.

The FBI said that between March 2010 and April 2011, it identified twenty incidents in which small to mid-sized organizations had fraudulent wire transfers to China after their online banking credentials were stolen by malicious software. The alert was sent out Tuesday in cooperation with the Internet Crime Complaint Center and the Financial Services Information Sharing and Analysis Center (FS-ISAC), an industry consortium. The alert notes that actual victim losses are $11 million, suggesting that victim banks were able to claw back some of the fraudulent transfers.”

From Krebs on Security