Union Bank of India reports cyber breach on offshore account

  • TECH
  • Monday, 25 Jul 2016

Security issue: Concerns about cyber threats to banks have grown since the Bangladesh Bank heist.

MUMBAI: Union Bank of India Ltd said one of the bank's offshore accounts was breached in a cyberattack, but the money trail was traced and the movement of funds was blocked. 

"There is no loss caused to the bank," the state-run bank said in a statement, adding it had informed authorities about the breach. 

Separately, Arun Tiwari, the bank's chairman, told Reuters that the breach of the "nostro" account – which a bank maintains with an overseas bank in foreign currency – took place in New York. A source familiar with the matter originally had said the breach occurred in Hong Kong. 

Tiwari declined to say how much money was transferred in the breach, but said the bank had already recovered 70% of the amount and the remainder was due to come back in the next few days. 

Following a recent cyberattack on a Bangladesh central bank's account at the New York Federal Reserve, the Reserve Bank of India last month asked Indian banks to immediately put in place a cyber security policy. 

Some US$81mil (RM330.52mil) was stolen from the Bangladesh central bank account with the New York Fed in one of the biggest-ever cyber heists. 

"A cyber security forensic audit has commenced to identify, plug any gaps, and strengthen the system," Union Bank said in a statement to Indian stock exchanges. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Tech News

U.S. bill would stop Big Tech favoring its own products
U.S. SEC praises equity market structure, absolves short sellers in GameStop report
Opinion: WhatsApp is a lifeline for two billion users. Facebook isn’t doing enough to protect it
Bank of Canada not planning to launch digital currency, at least for now
Chip tech firm Arm plans to slash development time for connected devices
German fintech N26 valued at more than $9 billion after fundraising
New York directs two cryptocurrency lending platforms to cease activity
Amazon to hire 150,000 U.S. workers for holiday shopping season
S.Africa's MTN and Vodacom join Telkom in temporary spectrum lawsuit
U.S. TV station operator Sinclair hit by ransomware attack

Others Also Read