NEW YORK (AP) -- In one of the largest fraud cases resulting from the terrorist attacks, thousands of people are accused of using ATMs to steal $15 million from a municipal employees' credit union whose computer security system was damaged on Sept. 11.
Sixty-six people have been arrested and 35 more were being sought in the scheme, authorities said Monday.
District Attorney Robert Morgenthau said the suspects found a way to repeatedly withdraw up to $500 a day from ATMs -- even if their accounts at the Municipal Credit Union couldn't cover it.
The problem stems from Sept. 11, when the attack on the World Trade Center damaged a nearby building housing the credit union's computer system.
Credit union officials soon realized they could not properly monitor the computer network that handles automated teller transactions. But they decided to allow withdrawals without the normal banking safeguards so they would not offend members affected by the tragedy.
"This is a prime example of no good deed goes unpunished," Morgenthau said. "People took advantage."
He said as many as 4,000 people manipulated the system to overdraw their bank accounts by at least $1,000. Of that group, more than 540 credit union members exceeded their balances by more than $5,000.
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