Cosmos Bank ATM hack: NPCI says cyber fraud due to malware attack on bank's IT system

The National Payments Corporation of India (NPCI) said that its systems are fully secure and the cyber fraud happened due to a malware-based attack on the Cosmos Bank's IT system.

By BusinessToday.In  
Wednesday, August 15, 2018

A day after Pune-based Cosmos Bank said it was hit by a cyber attack in which miscreants allegedly hacked the server and transferred over Rs 94 crore to overseas accounts, the National Payments Corporation of India (NPCI) claimed that its systems are "fully secure" and the cyber fraud happened due to a malware-based attack on the lender's IT system.

"This has happened due to malware based attack on bank's IT system which has caused a fraud. Under the attack, maximum transactions have been reported from outside India. We wish to reiterate that our systems are fully secure and we are monitoring the situation continuously. We are there to support Bank in identifying the cause of this fraud," Bharat Panchal, Head of Risk Management at NPCI said.

Hackers managed to siphon off over Rs 90 crore through a malware attack on the server of the cooperative bank and cloning thousands of debit cards, Cosmos Bank chairman Milind Kale had said. The fraudulent transactions were carried out on August 11 and August 13 and the malware attack by the hackers originated in Canada.

The bank has also registered an FIR at the Chatushringi police station in the city. A case was registered under sections 43, 65, 66(C) and 66 (D) of the Information Technology Act and relevant sections of the Indian Penal Code.

Kale had said that over the two days, hackers withdrew a total Rs 78 crore from various ATMs in 28 countries, including Canada, Hong Kong and a few ATMs in India, and another Rs 2.5 crore were taken out within India.

On August 13, hackers again transferred Rs 13.92 crore in a Hong Kong-based bank by using fraudulent transactions, he had said.

Kale had said the cooperative bank's core banking system was not affected and that it has already appointed a professional forensic agency to investigate the fraud.

As a precautionary measure, the bank has closed ATMs operations and suspended net and mobile banking facilities, he had said.

With PTI Inputs

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