Confidential Federal Audits Accuse Five Biggest Mortgage Firms Of Defrauding Taxpayers | Huffington Post

The audits accuse the five major lenders of violating the False Claims Act, a Civil War-era law crafted as a weapon against firms that swindle the government…

The audits conclude that the banks effectively cheated taxpayers by presenting the Federal Housing Administration with false claims: They filed for federal reimbursement on foreclosed homes that sold for less than the outstanding loan balance using defective and faulty documents.

Read Article.

Sony breach could cost card lenders $300 million | Reuters

Each customer request to replace a credit card would cost lenders about $3 to $5 per card, several analysts told Reuters on Wednesday and Thursday. Those costs would include the new piece of plastic itself, postage, and various customer service costs.

Hackers earlier in April broke into Sony’s PlayStation Network, stealing names, addresses and possibly credit card details from 77 million users. Sony shut down the network on April 19 but waited about a week to disclose that the system had been hacked and users’ data could have been stolen.

Read Article.